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 Long Straddle 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 Long Straddle 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 Long Straddle comparison:
| Comparison Aspect | Long Straddle | Bull Put Spread |
| View |  |  |
| Strategy Introduction | Long Straddle comes into play when the trader expects the market to move sharply, however, the direction of the movement cannot be predicted. The purpose of the strategy to allow the traders to benefit from volatile markets...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 | The trader should be able to trade based on his/her conviction that the markets will move, without being concerned about the direction of the movement. | 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 | Neutral | Moderately Bullish |
| Strategy Level Suitable for | Beginners | Intermediates |
| Options Traded | Call, Put | Put |
| Number of Positions | 2 | 2 |
| Action Needed | 1 ATM Call, 1 ATM Put | Buy OTM Put, Sell ITM Put |
| Risk for You | Limited | Limited |
| Profit Potential | Unlimited | Limited |
| Break Even Point for Investor | Lower Breakeven = Strike Price of Put - Net Premium Upper breakeven = Strike Price of Call + Net Premium | Strike price of short put MINUS net premium paid |
| Investor Intention | Put & Call Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Sharp Market Movement | Market Prices to Go Up |
| Strategy Summary | Excellent & Simple | Limited Risk, Limited Gains |
| Advantages | Uni-Directional Profit, Unlimited Gains | Limited Risk |
| Disadvantages | High Premium | Limited Profit |
| Market Scenarios - Profit | 1 | 3 |
| Market Scenarios - Loss | 1 | 2 |
| Also called as | NA | NA |
| More Comparisons | Long Straddle Vs Short Put | Bull Put Spread Vs Short Put |
| Long Straddle Vs Long Combo | Bull Put Spread Vs Long Combo | |
| Long Straddle Vs Synthetic Call | Bull Put Spread Vs Synthetic Call | |
| Long Straddle Vs Long Put | Bull Put Spread Vs Long Put | |
| Long Straddle Vs Long Call | Bull Put Spread Vs Long Call | |
| Long Straddle Vs Covered Call | Bull Put Spread Vs Covered Call | |
| Long Straddle Vs Covered Put | Bull Put Spread Vs Covered Put | |
| Long Straddle Vs Protective Call | Bull Put Spread Vs Protective Call | |
| Long Straddle Vs Short Box | Bull Put Spread Vs Short Box | |
| Long Straddle Vs Long Call Condor | Bull Put Spread Vs Long Call Condor | |
| Long Straddle Vs Short Call Condor | Bull Put Spread Vs Short Call Condor | |
| Long Straddle Vs Box Spread | Bull Put Spread Vs Box Spread | |
| Long Straddle Vs Short Strangle | Bull Put Spread Vs Short Strangle | |
| Long Straddle Vs Long Strangle | Bull Put Spread Vs Long Strangle | |
| Long Straddle Vs Collar Strategy | Bull Put Spread Vs Collar Strategy | |
| Long Straddle Vs Short Call | Bull Put Spread Vs Long Straddle | |
| Long Straddle Vs Short Straddle | Bull Put Spread Vs Short Straddle | |
| Long Straddle Vs Long Call Butterfly | Bull Put Spread Vs Long Call Butterfly | |
| Long Straddle Vs Short Call Butterfly | Bull Put Spread Vs Short Call Butterfly | |
| Long Straddle Vs Bear Call Spread | Bull Put Spread Vs Bear Call Spread | |
| Long Straddle Vs Bear Put Spread | Bull Put Spread Vs Bear Put Spread | |
| Long Straddle Vs Bull Put Spread | Bull Put Spread Vs Bull Call Spread | |
| Long Straddle Vs Bull Put Spread | Bull Put Spread Vs Short Call |
Thus, with this, we wrap up our comparison on Bull Put Spread Vs Long Straddle 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 unlimited profits from your share market trades, then you can opt to go for the Long Straddle strategy.
There is a limited amount of risk involved as well, however, there are good chances of high profits if the strategy is executed well.
Furthermore, as told above, it also depends on the market situation.
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