BEAR PUT SPREAD	CALL BACKSPREAD
About Strategy	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..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

BEAR PUT SPREAD Vs CALL BACKSPREAD - Details

	BEAR PUT SPREAD	CALL BACKSPREAD
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Net Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

BEAR PUT SPREAD Vs CALL BACKSPREAD - When & How to use ?

	BEAR PUT SPREAD	CALL BACKSPREAD
Market View	Bearish	Bullish
When to use?	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.	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Buy ITM Put Option, Sell OTM Put Option	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Strike Price of Long Put - Net Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

BEAR PUT SPREAD Vs CALL BACKSPREAD - Risk & Reward

	BEAR PUT SPREAD	CALL BACKSPREAD
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Limited	Unlimited

BEAR PUT SPREAD Vs CALL BACKSPREAD - Strategy Pros & Cons

	BEAR PUT SPREAD	CALL BACKSPREAD
Similar Strategies	Bear Call Spread, Bull Call Spread	-
Disadvantage	• Limited profit. • Early assignment risk.
Advantages	• 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.	• Unlimited profit potential.