STRAP	BULL 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..	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..

STRAP Vs BULL PUT SPREAD - Details

	STRAP	BULL PUT SPREAD
Market View	Neutral	Bullish
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 short put - net premium paid

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

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

STRAP Vs BULL PUT SPREAD - Risk & Reward

	STRAP	BULL PUT SPREAD
Maximum Profit Scenario	UNLIMITED	Max Profit = Net Premium Received
Maximum Loss Scenario	Net Premium Paid	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received
Risk	Limited	Limited
Reward	Unlimited	Limited

STRAP Vs BULL PUT SPREAD - Strategy Pros & Cons

	STRAP	BULL PUT SPREAD
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	Bull Call Spread, Bear Put Spread, Collar
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	• Limited profit potential. • In loss situations, time decay may go against you.
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.	• 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.