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 Strangle 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 Strangle 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 Strangle comparison:
| Comparison Aspect | Bull Put Spread | Long Strangle |
| 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 | The long strangle strategy helps the trader to take advantage of the volatility in the market. It is a trend neutral strategy, so the trader does not need to be certain of the direction...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. | It is a trend neutral strategy, so the trader does not need to be certain of the direction of the price movement. |
| Market Position | Moderately Bullish | Neutral |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Put | Call, Put |
| Number of Positions | 2 | 2 |
| Action Needed | Buy OTM Put, Sell ITM Put | One OTM Put, One OTM Call |
| Risk for You | Limited | Limited |
| Profit Potential | Limited | Unlimited |
| Break Even Point for Investor | Strike price of short put MINUS net premium paid | Lower Breakeven Point = Strike Price of Put - Net Premium Upper Breakeven Point = Strike Price of Call + Net Premium |
| Investor Intention | Let Options Expire Worthlessly | Both call and put options expire worthlessly |
| Investor Expectation | Market Prices to Go Up | Market Shows High Volatility |
| Strategy Summary | Limited Risk, Limited Gains | Attractive |
| Advantages | Limited Risk | Less Expensive, Limited Risk, Unlimited Gain |
| Disadvantages | Limited Profit | Price Movement has to be Big |
| Market Scenarios - Profit | 3 | 2 |
| Market Scenarios - Loss | 2 | 1 |
| Also called as | NA | NA |
| More Comparisons | Bull Put Spread Vs Short Put | Long Strangle Vs Short Put |
| Bull Put Spread Vs Long Combo | Long Strangle Vs Long Combo | |
| Bull Put Spread Vs Synthetic Call | Long Strangle Vs Synthetic Call | |
| Bull Put Spread Vs Long Put | Long Strangle Vs Long Put | |
| Bull Put Spread Vs Long Call | Long Strangle Vs Long Call | |
| Bull Put Spread Vs Covered Call | Long Strangle Vs Covered Call | |
| Bull Put Spread Vs Covered Put | Long Strangle Vs Covered Put | |
| Bull Put Spread Vs Protective Call | Long Strangle Vs Protective Call | |
| Bull Put Spread Vs Short Box | Long Strangle Vs Short Box | |
| Bull Put Spread Vs Long Call Condor | Long Strangle Vs Long Call Condor | |
| Bull Put Spread Vs Short Call Condor | Long Strangle Vs Short Call Condor | |
| Bull Put Spread Vs Box Spread | Long Strangle Vs Box Spread | |
| Bull Put Spread Vs Short Strangle | Long Strangle Vs Short Strangle | |
| Bull Put Spread Vs Long Strangle | Long Strangle Vs Short Call | |
| Bull Put Spread Vs Collar Strategy | Long Strangle Vs Collar Strategy | |
| Bull Put Spread Vs Long Straddle | Long Strangle Vs Long Straddle | |
| Bull Put Spread Vs Short Straddle | Long Strangle Vs Short Straddle | |
| Bull Put Spread Vs Long Call Butterfly | Long Strangle Vs Long Call Butterfly | |
| Bull Put Spread Vs Short Call Butterfly | Long Strangle Vs Short Call Butterfly | |
| Bull Put Spread Vs Bear Call Spread | Long Strangle Vs Bear Call Spread | |
| Bull Put Spread Vs Bear Put Spread | Long Strangle Vs Bear Put Spread | |
| Bull Put Spread Vs Bull Call Spread | Long Strangle Vs Bull Call Spread | |
| Bull Put Spread Vs Short Call | Long Strangle Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Bull Put Spread Vs Long Strangle 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.
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 Strangle strategy. Just remember, you need to be aware of the “right” strike prices for optimal gains.
Furthermore, as told above, it also depends on the market situation.
In case you are looking to trade in options segment or share market in general, let us assist you in that. Just fill the form below and we will take you to the steps ahead.
