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 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 Short 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 Short Strangle comparison:
| Comparison Aspect | Bull Put Spread | Short 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 short strangle options trading strategy is an excellent strategy to be deployed when the investor is expecting little to no volatility in the market...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. | If the prediction does not come out true, the strategy can cause unlimited loss. |
| Market Position | Moderately Bullish | Neutral |
| Strategy Level Suitable for | Intermediates | Experts |
| Options Traded | Put | Call |
| Number of Positions | 2 | 4 |
| Action Needed | Buy OTM Put, Sell ITM Put | 1 Short ITM Call, 1 Long ITM Call, 1 Long OTM Call, 1 Short 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 = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
| Investor Intention | Let Options Expire Worthlessly | Stock price remains between the 2 option Strike Prices and the options expire worthlessly |
| Investor Expectation | Market Prices to Go Up | Little or No Market Volatility |
| Strategy Summary | Limited Risk, Limited Gains | Profits in Stable Market |
| Advantages | Limited Risk | Higher Range of Profit |
| Disadvantages | Limited Profit | Low Premium, Unlimited Risk |
| Market Scenarios - Profit | 3 | 1 |
| Market Scenarios - Loss | 2 | 1 |
| Also called as | NA | Credit Spread |
| More Comparisons | Bull Put Spread Vs Short Put | Short Strangle Vs Short Put |
| Bull Put Spread Vs Long Combo | Short Strangle Vs Long Combo | |
| Bull Put Spread Vs Synthetic Call | Short Strangle Vs Synthetic Call | |
| Bull Put Spread Vs Long Put | Short Strangle Vs Long Put | |
| Bull Put Spread Vs Long Call | Short Strangle Vs Long Call | |
| Bull Put Spread Vs Covered Call | Short Strangle Vs Covered Call | |
| Bull Put Spread Vs Covered Put | Short Strangle Vs Covered Put | |
| Bull Put Spread Vs Protective Call | Short Strangle Vs Protective Call | |
| Bull Put Spread Vs Short Box | Short Strangle Vs Short Box | |
| Bull Put Spread Vs Long Call Condor | Short Strangle Vs Long Call Condor | |
| Bull Put Spread Vs Short Call Condor | Short Strangle Vs Short Call Condor | |
| Bull Put Spread Vs Box Spread | Short Strangle Vs Box Spread | |
| Bull Put Spread Vs Short Strangle | Short Strangle Vs Short Call | |
| Bull Put Spread Vs Long Strangle | Short Strangle Vs Long Strangle | |
| Bull Put Spread Vs Collar Strategy | Short Strangle Vs Collar Strategy | |
| Bull Put Spread Vs Long Straddle | Short Strangle Vs Long Straddle | |
| Bull Put Spread Vs Short Straddle | Short Strangle Vs Short Straddle | |
| Bull Put Spread Vs Long Call Butterfly | Short Strangle Vs Long Call Butterfly | |
| Bull Put Spread Vs Short Call Butterfly | Short Strangle Vs Short Call Butterfly | |
| Bull Put Spread Vs Bear Call Spread | Short Strangle Vs Bear Call Spread | |
| Bull Put Spread Vs Bear Put Spread | Short Strangle Vs Bear Put Spread | |
| Bull Put Spread Vs Bull Call Spread | Short Strangle Vs Bull Call Spread | |
| Bull Put Spread Vs Short Call | Short Strangle Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Bull Put Spread Vs Short 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.
However, if you are in a neutral market situation and have a limited risk appetite, then Short Strangle is a potential option strategy for you. Generally, this strategy is suitable when you are sure that there is going to be low or no market volatility at all.
The strategy comes with a limited profit potential.
Furthermore, as told above, it also depends on the market situation.
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