BULL PUT SPREAD	COVERED CALL
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..	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o .. Read more..

BULL PUT SPREAD Vs COVERED CALL - Details

	BULL PUT SPREAD	COVERED CALL
Market View	Bullish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike price of short put - net premium paid	Purchase Price of Underlying- Premium Received

BULL PUT SPREAD Vs COVERED CALL - When & How to use ?

	BULL PUT SPREAD	COVERED CALL
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.	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.
Action	Buy OTM Put Option, Sell ITM Put Option	(Buy Underlying) (Sell OTM Call Option)
Breakeven Point	Strike price of short put - net premium paid	Purchase Price of Underlying- Premium Received

BULL PUT SPREAD Vs COVERED CALL - Risk & Reward

	BULL PUT SPREAD	COVERED CALL
Maximum Profit Scenario	Max Profit = Net Premium Received	[Call Strike Price - Stock Price Paid] + Premium Received
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Purchase Price of Underlying - Price of Underlying) + Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

BULL PUT SPREAD Vs COVERED CALL - Strategy Pros & Cons

	BULL PUT SPREAD	COVERED CALL
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Bull Call Spread
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.
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.	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.