BEAR PUT SPREAD	LONG COMBO
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..	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..

BEAR PUT SPREAD Vs LONG COMBO - Details

	BEAR PUT SPREAD	LONG COMBO
Market View	Bearish	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 Long Put - Net Premium	Call Strike + Net Premium

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

	BEAR PUT SPREAD	LONG COMBO
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 an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.
Action	Buy ITM Put Option, Sell OTM Put Option	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Strike Price of Long Put - Net Premium	Call Strike + Net Premium

BEAR PUT SPREAD Vs LONG COMBO - Risk & Reward

	BEAR PUT SPREAD	LONG COMBO
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Underlying asset goes down and Put option exercised
Risk	Limited	Unlimited
Reward	Limited	Unlimited

BEAR PUT SPREAD Vs LONG COMBO - Strategy Pros & Cons

	BEAR PUT SPREAD	LONG COMBO
Similar Strategies	Bear Call Spread, Bull Call Spread	-
Disadvantage	• Limited profit. • Early assignment risk.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
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.	• 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.