BULL PUT SPREAD	SHORT STRANGLE
About Strategy	Bull Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem Read more..	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

BULL PUT SPREAD Vs SHORT STRANGLE - Details

	BULL PUT SPREAD	SHORT STRANGLE
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike price of short put - net premium paid	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

BULL PUT SPREAD Vs SHORT STRANGLE - When & How to use ?

	BULL PUT SPREAD	SHORT STRANGLE
Market View	Bullish	Neutral
When to use?	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Buy OTM Put Option, Sell ITM Put Option	Sell OTM Call, Sell OTM Put
Breakeven Point	Strike price of short put - net premium paid	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

BULL PUT SPREAD Vs SHORT STRANGLE - Risk & Reward

	BULL PUT SPREAD	SHORT STRANGLE
Maximum Profit Scenario	Max Profit = Net Premium Received	Maximum Profit = Net Premium Received
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

BULL PUT SPREAD Vs SHORT STRANGLE - Strategy Pros & Cons

	BULL PUT SPREAD	SHORT STRANGLE
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Short Straddle, Long Strangle
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
Advantages	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.