PUT BACKSPREAD	LONG PUT
About Strategy	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 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 Vs LONG PUT - Details

	PUT BACKSPREAD	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		Unlimited
Risk Profile		Limited
Breakeven Point		Strike Price of Long Put - Premium Paid

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

	PUT BACKSPREAD	LONG PUT
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

PUT BACKSPREAD Vs LONG PUT - Risk & Reward

	PUT BACKSPREAD	LONG PUT
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

PUT BACKSPREAD Vs LONG PUT - Strategy Pros & Cons

	PUT BACKSPREAD	LONG PUT
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.