BEAR PUT SPREAD	LONG STRANGLE
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 Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the .. Read more..

BEAR PUT SPREAD Vs LONG STRANGLE - Details

	BEAR PUT SPREAD	LONG STRANGLE
Market View	Bearish	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	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Net Premium	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

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

	BEAR PUT SPREAD	LONG STRANGLE
Market View	Bearish	Neutral
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 in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action	Buy ITM Put Option, Sell OTM Put Option	Buy OTM Call Option, Buy OTM Put Option
Breakeven Point	Strike Price of Long Put - Net Premium	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

BEAR PUT SPREAD Vs LONG STRANGLE - Risk & Reward

	BEAR PUT SPREAD	LONG STRANGLE
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	Profit = Price of Underlying - Strike Price of Long Call - Net Premium Paid
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Max Loss = Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BEAR PUT SPREAD Vs LONG STRANGLE - Strategy Pros & Cons

	BEAR PUT SPREAD	LONG STRANGLE
Similar Strategies	Bear Call Spread, Bull Call Spread	Long Straddle, Short Strangle
Disadvantage	• Limited profit. • Early assignment risk.	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.
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.	• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .