BULL PUT SPREAD	LONG COMBO
About Strategy	Bull Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem Read more..	Long Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received .. Read more..

BULL PUT SPREAD Vs LONG COMBO - Details

	BULL PUT SPREAD	LONG COMBO
Market View	Bullish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike price of short put - net premium paid	Call Strike + Net Premium

BULL PUT SPREAD Vs LONG COMBO - When & How to use ?

	BULL PUT SPREAD	LONG COMBO
Market View	Bullish	Bullish
When to use?	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.	This strategy is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.
Action	Buy OTM Put Option, Sell ITM Put Option	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Strike price of short put - net premium paid	Call Strike + Net Premium

BULL PUT SPREAD Vs LONG COMBO - Risk & Reward

	BULL PUT SPREAD	LONG COMBO
Maximum Profit Scenario	Max Profit = Net Premium Received	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Underlying asset goes down and Put option exercised
Risk	Limited	Unlimited
Reward	Limited	Unlimited

BULL PUT SPREAD Vs LONG COMBO - Strategy Pros & Cons

	BULL PUT SPREAD	LONG COMBO
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	-
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.