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 Short 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 Short 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 Short Straddle comparison:
| Comparison Aspect | Bull Put Spread | Short Straddle |
| 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 | Using the short straddle strategy, the investor makes an upfront gain through the premiums collected by writing the call and put options. The investor expects that there...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 investor must hold strong views of the steadiness in the market to be involved in the short straddle. |
| Market Position | Moderately Bullish | Neutral |
| Strategy Level Suitable for | Intermediates | Experts |
| Options Traded | Put | Call, Put |
| Number of Positions | 2 | 2 |
| Action Needed | Buy OTM Put, Sell ITM Put | 1 ATM Call, 1 ATM Put |
| Risk for You | Limited | Unlimited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Strike price of short put MINUS net premium paid | Lower Breakeven = Strike Price of Put - Net Premium Upper breakeven = Strike Price of Call+ Net Premium |
| Investor Intention | Let Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Market Prices to Go Up | No Market Movement |
| Strategy Summary | Limited Risk, Limited Gains | Complex |
| Advantages | Limited Risk | Profits in Zero Market Volatility Situation |
| Disadvantages | Limited Profit | Limited Profit, Unlimited Risk |
| Market Scenarios - Profit | 3 | 1 |
| Market Scenarios - Loss | 2 | 2 |
| Also called as | NA | NA |
| More Comparisons | Bull Put Spread Vs Short Put | Short Straddle Vs Short Put |
| Bull Put Spread Vs Long Combo | Short Straddle Vs Long Combo | |
| Bull Put Spread Vs Synthetic Call | Short Straddle Vs Synthetic Call | |
| Bull Put Spread Vs Long Put | Short Straddle Vs Long Put | |
| Bull Put Spread Vs Long Call | Short Straddle Vs Long Call | |
| Bull Put Spread Vs Covered Call | Short Straddle Vs Covered Call | |
| Bull Put Spread Vs Covered Put | Short Straddle Vs Covered Put | |
| Bull Put Spread Vs Protective Call | Short Straddle Vs Protective Call | |
| Bull Put Spread Vs Short Box | Short Straddle Vs Short Box | |
| Bull Put Spread Vs Long Call Condor | Short Straddle Vs Long Call Condor | |
| Bull Put Spread Vs Short Call Condor | Short Straddle Vs Short Call Condor | |
| Bull Put Spread Vs Box Spread | Short Straddle Vs Box Spread | |
| Bull Put Spread Vs Short Strangle | Short Straddle Vs Short Strangle | |
| Bull Put Spread Vs Long Strangle | Short Straddle Vs Long Strangle | |
| Bull Put Spread Vs Collar Strategy | Short Straddle Vs Collar Strategy | |
| Bull Put Spread Vs Long Straddle | Short Straddle Vs Long Straddle | |
| Bull Put Spread Vs Short Straddle | Short Straddle Vs Short Call | |
| Bull Put Spread Vs Long Call Butterfly | Short Straddle Vs Long Call Butterfly | |
| Bull Put Spread Vs Short Call Butterfly | Short Straddle Vs Short Call Butterfly | |
| Bull Put Spread Vs Bear Call Spread | Short Straddle Vs Bear Call Spread | |
| Bull Put Spread Vs Bear Put Spread | Short Straddle Vs Bear Put Spread | |
| Bull Put Spread Vs Bull Call Spread | Short Straddle Vs Bull Put Spread | |
| Bull Put Spread Vs Short Call | Short Straddle Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Bull Put Spread Vs Short 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 an experienced trader and are in a neutral market situation, then Short Straddle is one of the options you can look out for.
There is a high amount of risk involved as well – thus, you have to be very sure of the point that the market has no volatility. Otherwise, stakes can be very high.
Furthermore, as told above, it also depends on the market situation.
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