LONG PUT	PUT BACKSPREAD
About Strategy	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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

LONG PUT Vs PUT BACKSPREAD - Details

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

LONG PUT Vs PUT BACKSPREAD - When & How to use ?

	LONG PUT	PUT BACKSPREAD
Market View	Bearish	Bearish
When to use?	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 Put Option
Breakeven Point	Strike Price of Long Put - Premium Paid

LONG PUT Vs PUT BACKSPREAD - Risk & Reward

	LONG PUT	PUT BACKSPREAD
Maximum Profit Scenario	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG PUT Vs PUT BACKSPREAD - Strategy Pros & Cons

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