SHORT PUT	BEAR PUT SPREAD
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. 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..

SHORT PUT Vs BEAR PUT SPREAD - Details

	SHORT PUT	BEAR PUT SPREAD
Market View	Bullish	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price - Premium	Strike Price of Long Put - Net Premium

SHORT PUT Vs BEAR PUT SPREAD - When & How to use ?

	SHORT PUT	BEAR PUT SPREAD
Market View	Bullish	Bearish
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	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	Sell Put Option	Buy ITM Put Option, Sell OTM Put Option
Breakeven Point	Strike Price - Premium	Strike Price of Long Put - Net Premium

SHORT PUT Vs BEAR PUT SPREAD - Risk & Reward

	SHORT PUT	BEAR PUT SPREAD
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Max Loss = Net Premium Paid.
Risk	Unlimited	Limited
Reward	Limited	Limited

SHORT PUT Vs BEAR PUT SPREAD - Strategy Pros & Cons

	SHORT PUT	BEAR PUT SPREAD
Similar Strategies	Bull Put Spread, Short Starddle	Bear Call Spread, Bull Call Spread
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Limited profit. • Early assignment risk.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.	• 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.