COVERED CALL	BULL PUT SPREAD
About Strategy	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o Read more..	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 CALL Vs BULL PUT SPREAD - Details

	COVERED CALL	BULL PUT SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Purchase Price of Underlying- Premium Received	Strike price of short put - net premium paid

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

	COVERED CALL	BULL PUT SPREAD
Market View	Bullish	Bullish
When to use?	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.	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.
Action	(Buy Underlying) (Sell OTM Call Option)	Buy OTM Put Option, Sell ITM Put Option
Breakeven Point	Purchase Price of Underlying- Premium Received	Strike price of short put - net premium paid

COVERED CALL Vs BULL PUT SPREAD - Risk & Reward

	COVERED CALL	BULL PUT SPREAD
Maximum Profit Scenario	[Call Strike Price - Stock Price Paid] + Premium Received	Max Profit = Net Premium Received
Maximum Loss Scenario	Purchase Price of Underlying - Price of Underlying) + Premium Received	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received
Risk	Unlimited	Limited
Reward	Limited	Limited

COVERED CALL Vs BULL PUT SPREAD - Strategy Pros & Cons

	COVERED CALL	BULL PUT SPREAD
Similar Strategies	Bull Call Spread	Bull Call Spread, Bear Put Spread, Collar
Disadvantage	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.	• Limited profit potential. • In loss situations, time decay may go against you.
Advantages	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.	• 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.