STRAP	BEAR PUT SPREAD
About Strategy	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin 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..

STRAP Vs BEAR PUT SPREAD - Details

	STRAP	BEAR PUT SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	3	2
Strategy Level	Beginners	Advance
Reward Profile	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid	Limited
Risk Profile	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts	Limited
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Strike Price of Long Put - Net Premium

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

	STRAP	BEAR PUT SPREAD
Market View	Neutral	Bearish
When to use?	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.	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	Buy 2 ATM Call Option, Buy 1 ATM Put Option	Buy ITM Put Option, Sell OTM Put Option
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Strike Price of Long Put - Net Premium

STRAP Vs BEAR PUT SPREAD - Risk & Reward

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

STRAP Vs BEAR PUT SPREAD - Strategy Pros & Cons

	STRAP	BEAR PUT SPREAD
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	Bear Call Spread, Bull Call Spread
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	• Limited profit. • Early assignment risk.
Advantages	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.	• 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.