BEAR PUT SPREAD	LONG PUT
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 Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

BEAR PUT SPREAD Vs LONG PUT - Details

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

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

	BEAR PUT SPREAD	LONG PUT
Market View	Bearish	Bearish
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.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Buy ITM Put Option, Sell OTM Put Option	Buy Put Option
Breakeven Point	Strike Price of Long Put - Net Premium	Strike Price of Long Put - Premium Paid

BEAR PUT SPREAD Vs LONG PUT - Risk & Reward

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

BEAR PUT SPREAD Vs LONG PUT - Strategy Pros & Cons

	BEAR PUT SPREAD	LONG PUT
Similar Strategies	Bear Call Spread, Bull Call Spread	Protective Call, Short Put
Disadvantage	• Limited profit. • Early assignment risk.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
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.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.