LONG STRADDLE	BEAR PUT SPREAD
About Strategy	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc Read more..	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM .. Read more..

LONG STRADDLE Vs BEAR PUT SPREAD - Details

	LONG STRADDLE	BEAR PUT SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Strike Price of Long Put - Net Premium

LONG STRADDLE Vs BEAR PUT SPREAD - When & How to use ?

	LONG STRADDLE	BEAR PUT SPREAD
Market View	Neutral	Bearish
When to use?	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.	The bear call spread options strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Buy Call Option, Buy Put Option	Buy ITM Put Option, Sell OTM Put Option
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Strike Price of Long Put - Net Premium

LONG STRADDLE Vs BEAR PUT SPREAD - Risk & Reward

	LONG STRADDLE	BEAR PUT SPREAD
Maximum Profit Scenario	Max profit is achieved when at one option is exercised.	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.
Maximum Loss Scenario	Maximum Loss = Net Premium Paid	Max Loss = Net Premium Paid.
Risk	Limited	Limited
Reward	Unlimited	Limited

LONG STRADDLE Vs BEAR PUT SPREAD - Strategy Pros & Cons

	LONG STRADDLE	BEAR PUT SPREAD
Similar Strategies	Bear Put Spread	Bear Call Spread, Bull Call Spread
Disadvantage	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.	• Limited profit. • Early assignment risk.
Advantages	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.