BULL PUT SPREAD	COVERED PUT
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..	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the .. Read more..

BULL PUT SPREAD Vs COVERED PUT - Details

	BULL PUT SPREAD	COVERED PUT
Market View	Bullish	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option) + Underlying
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	Futures Price + Premium Received

BULL PUT SPREAD Vs COVERED PUT - When & How to use ?

	BULL PUT SPREAD	COVERED PUT
Market View	Bullish	Bearish
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.	The Covered Put works well when the market is moderately Bearish.
Action	Buy OTM Put Option, Sell ITM Put Option	Sell Underlying Sell OTM Put Option
Breakeven Point	Strike price of short put - net premium paid	Futures Price + Premium Received

BULL PUT SPREAD Vs COVERED PUT - Risk & Reward

	BULL PUT SPREAD	COVERED PUT
Maximum Profit Scenario	Max Profit = Net Premium Received	The profit happens when the price of the underlying moves above strike price of Short Put.
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

BULL PUT SPREAD Vs COVERED PUT - Strategy Pros & Cons

	BULL PUT SPREAD	COVERED PUT
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Bear Put Spread, Bear Call Spread
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
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.	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.