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 Box 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 Box 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 Box Spread comparison:
| Comparison Aspect | Bull Put Spread | Box Spread |
| View |  |  |
| Strategy Introduction | 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 | Box Spread is an arbitrage strategy in which two complementary positions are taken that balance out the risk of each other. This makes the box spread an almost risk-free strategy...more |
| Investor Obligation | 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. | The trader has the obligation to keep the positions open till they reach their respective expirations. |
| Market Position | Moderately Bullish | Neutral |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Put | Call, Put |
| Number of Positions | 2 | 4 |
| Action Needed | Buy OTM Put, Sell ITM Put | 1 Long ITM Call, 1 Short OTM Call, 1 Long ITM Put, 1 Short OTM Put |
| Risk for You | Limited | None |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Strike price of short put MINUS net premium paid | NA |
| Investor Intention | Let Options Expire Worthlessly | Choose the Correct Stike Prices |
| Investor Expectation | Market Prices to Go Up | Short-term demand shifts of the options in the market. |
| Strategy Summary | Limited Risk, Limited Gains | Complicated |
| Advantages | Limited Risk | Risk Free, Direction Neutral |
| Disadvantages | Limited Profit | Limited Profit, High Margin Maintenance, Positions cannot be closed before expiry. |
| Market Scenarios - Profit | 3 | 2 |
| Market Scenarios - Loss | 2 | 0 |
| Also called as | NA | NA |
| More Comparisons | Bull Put Spread Vs Short Put | Box Spread Vs Short Put |
| Bull Put Spread Vs Long Combo | Box Spread Vs Long Combo | |
| Bull Put Spread Vs Synthetic Call | Box Spread Vs Synthetic Call | |
| Bull Put Spread Vs Long Put | Box Spread Vs Long Put | |
| Bull Put Spread Vs Long Call | Box Spread Vs Long Call | |
| Bull Put Spread Vs Covered Call | Box Spread Vs Covered Call | |
| Bull Put Spread Vs Covered Put | Box Spread Vs Covered Put | |
| Bull Put Spread Vs Protective Call | Box Spread Vs Protective Call | |
| Bull Put Spread Vs Short Box | Box Spread Vs Short Box | |
| Bull Put Spread Vs Long Call Condor | Box Spread Vs Long Call Condor | |
| Bull Put Spread Vs Short Call Condor | Box Spread Vs Short Call Condor | |
| Bull Put Spread Vs Box Spread | Box Spread Vs Short Call | |
| Bull Put Spread Vs Short Strangle | Box Spread Vs Short Strangle | |
| Bull Put Spread Vs Long Strangle | Box Spread Vs Long Strangle | |
| Bull Put Spread Vs Collar Strategy | Box Spread Vs Collar Strategy | |
| Bull Put Spread Vs Long Straddle | Box Spread Vs Long Straddle | |
| Bull Put Spread Vs Short Straddle | Box Spread Vs Short Straddle | |
| Bull Put Spread Vs Long Call Butterfly | Box Spread Vs Long Call Butterfly | |
| Bull Put Spread Vs Short Call Butterfly | Box Spread Vs Short Call Butterfly | |
| Bull Put Spread Vs Bear Call Spread | Box Spread Vs Bear Call Spread | |
| Bull Put Spread Vs Bear Put Spread | Box Spread Vs Bear Put Spread | |
| Bull Put Spread Vs Bull Call Spread | Box Spread Vs Bull Call Spread | |
| Bull Put Spread Vs Short Call | Box Spread Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Bull Put Spread Vs Box 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 in a neutral market situation and are looking for consistent but limited profits for your share market trades, then you can opt to go for the Box spread strategy.
Furthermore, as told above, it also depends on the market situation.
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