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 Long Put Vs Bear Call 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 Long Put Vs Bear Call 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 Long Put Vs Bear Call Spread comparison:
| Comparison Aspect | Long Put | Bear Call Spread |
| View |  |  |
| Strategy Introduction | Long Put is used when the trader has a bearish view on the market and expects the price of the asset to go down. He will then wait for the prices to go down and then exercise his option...more | The bear call spread consists of two calls, both with the same underlying asset and expiration date, but the strike price of the call options bought is less than the strike price of the same number of call options sold. Like most of the spread strategies, it is a limited-risk...more |
| Investor Obligation | The strategy gives the trader a right to buy the put option on expiry, but not the obligation. The trader may choose to buy the option or not. | As a thumb rule, the expiration date must be about 30-45 days away in order to be able to take advantage of the accelerating time decay. |
| Market Position | Bearish | Moderately Bearish |
| Strategy Level Suitable for | Beginners | Intermediates |
| Options Traded | Put | Call |
| Number of Positions | 1 | 2 |
| Action Needed | Buy Put Option | Buy OTM Call, Sell OTM Call |
| Risk for You | Limited | Limited |
| Profit Potential | Unlimited | Limited |
| Break Even Point for Investor | Strike Price MINUS Premium | Strike Price of Short Call + Net Premium Received |
| Investor Intention | Let Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Prices of Assets go down | Market to go down gradually, but moderately |
| Strategy Summary | Effective | Limited Risk Limited Profit |
| Advantages | Unlimited Profits, Profits possible even in Bearish Market | Profit when Market is going down, Limited Risk |
| Disadvantages | High Premium | Limited Profit |
| Market Scenarios - Profit | 2 | 2 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Long Put Vs Short Put | Bear Call Spread Vs Short Put |
| Long Put Vs Long Combo | Bear Call Spread Vs Long Combo | |
| Long Put Vs Synthetic Call | Bear Call Spread Vs Synthetic Call | |
| Long Put Vs Short Call | Bear Call Spread Vs Long Put | |
| Long Put Vs Long Call | Bear Call Spread Vs Long Call | |
| Long Put Vs Covered Call | Bear Call Spread Vs Covered Call | |
| Long Put Vs Covered Put | Bear Call Spread Vs Covered Put | |
| Long Put Vs Protective Call | Bear Call Spread Vs Protective Call | |
| Long Put Vs Short Box | Bear Call Spread Vs Short Box | |
| Long Put Vs Long Call Condor | Bear Call Spread Vs Long Call Condor | |
| Long Put Vs Short Call Condor | Bear Call Spread Vs Short Call Condor | |
| Long Put Vs Box Spread | Bear Call Spread Vs Box Spread | |
| Long Put Vs Short Strangle | Bear Call Spread Vs Short Strangle | |
| Long Put Vs Long Strangle | Bear Call Spread Vs Long Strangle | |
| Long Put Vs Collar Strategy | Bear Call Spread Vs Collar Strategy | |
| Long Put Vs Long Straddle | Bear Call Spread Vs Long Straddle | |
| Long Put Vs Short Straddle | Bear Call Spread Vs Short Straddle | |
| Long Put Vs Long Call Butterfly | Bear Call Spread Vs Long Call Butterfly | |
| Long Put Vs Short Call Butterfly | Bear Call Spread Vs Short Call Butterfly | |
| Long Put Vs Bear Call Spread | Bear Call Spread Vs Short Call | |
| Long Put Vs Bear Put Spread | Bear Call Spread Vs Bear Put Spread | |
| Long Put Vs Bull Call Spread | Bear Call Spread Vs Bull Call Spread | |
| Long Put Vs Bull Put Spread | Bear Call Spread Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Long Put Vs Bear Call Spread option strategies.
As mentioned above, if you are a beginner level trader and are looking for unlimited profits with limited risk – it makes sense for you to employ the Long Put Option Strategy. As the name suggests, if you are looking at a slightly bearish market position and are open for a little risk, then bear call spread is something you can try in your trades. Having said that, the profit you can expect is going to be on a relatively limited level while using this strategy.
At the same time, be aware of all the related aspects (like the ones listed above) and then make a choice for yourself.
Furthermore, as said above, it also depends on the market situation.
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