Compare Strategies
BULL PUT SPREAD | BULL PUT SPREAD | |
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About Strategy |
Bull Put Spread Option StrategyBull 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 |
Bull Put Spread Option StrategyBull 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 .. |
BULL PUT SPREAD Vs BULL PUT SPREAD - Details
BULL PUT SPREAD | BULL PUT SPREAD | |
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Market View | Bullish | Bullish |
Type (CE/PE) | PE (Put Option) | PE (Put Option) |
Number Of Positions | 2 | 2 |
Strategy Level | Advance | Advance |
Reward Profile | Limited | Limited |
Risk Profile | Limited | Limited |
Breakeven Point | Strike price of short put - net premium paid | Strike price of short put - net premium paid |
BULL PUT SPREAD Vs BULL PUT SPREAD - When & How to use ?
BULL PUT SPREAD | BULL PUT SPREAD | |
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Market View | Bullish | Bullish |
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. | 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 OTM Put Option, Sell ITM Put Option | Buy OTM Put Option, Sell ITM Put Option |
Breakeven Point | Strike price of short put - net premium paid | Strike price of short put - net premium paid |
BULL PUT SPREAD Vs BULL PUT SPREAD - Risk & Reward
BULL PUT SPREAD | BULL PUT SPREAD | |
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Maximum Profit Scenario | Max Profit = Net Premium Received | Max Profit = Net Premium Received |
Maximum Loss Scenario | Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received | Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received |
Risk | Limited | Limited |
Reward | Limited | Limited |
BULL PUT SPREAD Vs BULL PUT SPREAD - Strategy Pros & Cons
BULL PUT SPREAD | BULL PUT SPREAD | |
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Similar Strategies | Bull Call Spread, Bear Put Spread, Collar | Bull Call Spread, Bear Put Spread, Collar |
Disadvantage | • Limited profit potential. • In loss situations, time decay may go against you. | • Limited profit potential. • In loss situations, time decay may go against you. |
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. | • 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. |