When it comes to Options Trading, there are different complexities involved in terms of choosing a specific strategy that works the best for you.
At the same time, each strategy has its own set of advantages as well as limitations, thus making the concept of options trading even more challenging. Thus, in case you are looking to fit a particular strategy in your option trades, just check few areas before you make a choice.
In this detailed comparison of Bull Put Spread Vs Bear Put Spread options trading strategies, we will be looking at the below-mentioned aspects and more:
- Current Market Position
- Your Risk Appetite
- Your Trading Experience
- Profit Potential
- Intention and Expectation of a trader
- Break-even point of your trade
Apart from the Bull Put Spread Vs Bear Put Spread strategies, there are more than 25 comparisons of each of these strategies with other option strategies. With all these comparisons, you should be able to filter the ones that work the best for you.
Here is the detailed Bull Put Spread Vs Bear Put Spread comparison:
| Comparison Aspect | Bear Put Spread | Bull Put Spread |
| View |  |  |
| Strategy Introduction | Bear Put Spread is a type of vertical spread wherein buys a put option hoping to make a profit due to the market decline, and at the same time writes another put option with...more | Bull Put Spread comes into play when the trader is expecting the market is going up gradually, but moderately. So, this is also suitable for a moderately bullish forecast, just like the bull call option...more |
| Investor Obligation | If the prices fall as expected, the trader can make profits and limit his losses, but if the prices fall far more than expected then the trader won’t be able to make any profit. | Bull put spread is more ideal if the there is very high volatility in the market, time to expiration date is more and the market has declined considerably. |
| Market Position | Moderately Bearish | Moderately Bullish |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Put | Put |
| Number of Positions | 2 | 2 |
| Action Needed | Buy ITM Put, Sell OTM Put | Buy OTM Put, Sell ITM Put |
| Risk for You | Limited | Limited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Strike Price of Long Put MINUS Net Premium | Strike price of short put MINUS net premium paid |
| Investor Intention | Let Put Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Market Prices to go Down | Market Prices to Go Up |
| Strategy Summary | Limit Your Losses | Limited Risk, Limited Gains |
| Advantages | Limited Risk, Capped Losses | Limited Risk |
| Disadvantages | Limited Profit | Limited Profit |
| Market Scenarios - Profit | 1 | 3 |
| Market Scenarios - Loss | 2 | 2 |
| Also called as | NA | NA |
| More Comparisons | Bear Put Spread Vs Short Put | Bull Put Spread Vs Short Put |
| Bear Put Spread Vs Long Combo | Bull Put Spread Vs Long Combo | |
| Bear Put Spread Vs Synthetic Call | Bull Put Spread Vs Synthetic Call | |
| Bear Put Spread Vs Long Put | Bull Put Spread Vs Long Put | |
| Bear Put Spread Vs Long Call | Bull Put Spread Vs Long Call | |
| Bear Put Spread Vs Covered Call | Bull Put Spread Vs Covered Call | |
| Bear Put Spread Vs Covered Put | Bull Put Spread Vs Covered Put | |
| Bear Put Spread Vs Protective Call | Bull Put Spread Vs Protective Call | |
| Bear Put Spread Vs Short Box | Bull Put Spread Vs Short Box | |
| Bear Put Spread Vs Long Call Condor | Bull Put Spread Vs Long Call Condor | |
| Bear Put Spread Vs Short Call Condor | Bull Put Spread Vs Short Call Condor | |
| Bear Put Spread Vs Box Spread | Bull Put Spread Vs Box Spread | |
| Bear Put Spread Vs Short Strangle | Bull Put Spread Vs Short Strangle | |
| Bear Put Spread Vs Long Strangle | Bull Put Spread Vs Long Strangle | |
| Bear Put Spread Vs Collar Strategy | Bull Put Spread Vs Collar Strategy | |
| Bear Put Spread Vs Long Straddle | Bull Put Spread Vs Long Straddle | |
| Bear Put Spread Vs Short Straddle | Bull Put Spread Vs Short Straddle | |
| Bear Put Spread Vs Long Call Butterfly | Bull Put Spread Vs Long Call Butterfly | |
| Bear Put Spread Vs Short Call Butterfly | Bull Put Spread Vs Short Call Butterfly | |
| Bear Put Spread Vs Bear Call Spread | Bull Put Spread Vs Bear Call Spread | |
| Bear Put Spread Vs Short Call | Bull Put Spread Vs Bear Put Spread | |
| Bear Put Spread Vs Bull Call Spread | Bull Put Spread Vs Bull Call Spread | |
| Bear Put Spread Vs Bull Put Spread | Bull Put Spread Vs Short Call |
Thus, with this, we wrap up our comparison on Bull Put Spread Vs Bear Put Spread option strategies.
At the same time, if you are in a moderately bullish forecast situation and want to take a limited risk, then Bull Put Spread is one of the options trading strategies you can look out for.
The profit you get using this strategy is also limited in scope.
However, if you are looking to make some money from a market decline and can take some basic risk – then Bear Put Spread options strategy makes sense to you.
This needs to be known that the profit you get using this strategy is also limited in scope.
Furthermore, as told above, it also depends on the market situation.
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