BULL PUT SPREAD	SHORT GUTS
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..	Short Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in the positions. < .. Read more..

BULL PUT SPREAD Vs SHORT GUTS - Details

	BULL PUT SPREAD	SHORT GUTS
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

BULL PUT SPREAD Vs SHORT GUTS - When & How to use ?

	BULL PUT SPREAD	SHORT GUTS
Market View	Bullish	Neutral
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 implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future.
Action	Buy OTM Put Option, Sell ITM Put Option	Sell 1 ITM Call, Sell 1 ITM Put
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

BULL PUT SPREAD Vs SHORT GUTS - Risk & Reward

	BULL PUT SPREAD	SHORT GUTS
Maximum Profit Scenario	Max Profit = Net Premium Received	Net Premium Received + Strike Price of Short Put - Strike Price of Short Call - Commissions Paid
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Price of Underlying - Strike Price of Short Call - Net Premium Received OR Strike Price of Short Put - Price of Underlying - Net Premium Received + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

BULL PUT SPREAD Vs SHORT GUTS - Strategy Pros & Cons

	BULL PUT SPREAD	SHORT GUTS
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.
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.	• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.