BULL CALL SPREAD	LONG PUT
About Strategy	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. 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..

BULL CALL SPREAD Vs LONG PUT - Details

	BULL CALL SPREAD	LONG PUT
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike price of purchased call + net premium paid	Strike Price of Long Put - Premium Paid

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

	BULL CALL SPREAD	LONG PUT
Market View	Bullish	Bearish
When to use?	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.	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 ITM Call Option, Sell OTM Call Option	Buy Put Option
Breakeven Point	Strike price of purchased call + net premium paid	Strike Price of Long Put - Premium Paid

BULL CALL SPREAD Vs LONG PUT - Risk & Reward

	BULL CALL SPREAD	LONG PUT
Maximum Profit Scenario	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Net Premium Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BULL CALL SPREAD Vs LONG PUT - Strategy Pros & Cons

	BULL CALL SPREAD	LONG PUT
Similar Strategies	Collar	Protective Call, Short Put
Disadvantage	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.