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 Put 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 Put 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 Put Spread comparison:
| Comparison Aspect | Long Put | Bear Put 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 | Bear Put Spread is a type of vertical spread wherein buys a put option hoping to make a profit due to the market decline, and at the same time writes another put option with...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. | If the prices fall as expected, the trader can make profits and limit his losses, but if the prices fall far more than expected then the trader won’t be able to make any profit. |
| Market Position | Bearish | Moderately Bearish |
| Strategy Level Suitable for | Beginners | Intermediates |
| Options Traded | Put | Put |
| Number of Positions | 1 | 2 |
| Action Needed | Buy Put Option | Buy ITM Put, Sell OTM Put |
| Risk for You | Limited | Limited |
| Profit Potential | Unlimited | Limited |
| Break Even Point for Investor | Strike Price MINUS Premium | Strike Price of Long Put MINUS Net Premium |
| Investor Intention | Let Options Expire Worthlessly | Let Put Options Expire Worthlessly |
| Investor Expectation | Prices of Assets go down | Market Prices to go Down |
| Strategy Summary | Effective | Limit Your Losses |
| Advantages | Unlimited Profits, Profits possible even in Bearish Market | Limited Risk, Capped Losses |
| Disadvantages | High Premium | Limited Profit |
| Market Scenarios - Profit | 2 | 1 |
| Market Scenarios - Loss | 1 | 2 |
| Also called as | NA | NA |
| More Comparisons | Long Put Vs Short Put | Bear Put Spread Vs Short Put |
| Long Put Vs Long Combo | Bear Put Spread Vs Long Combo | |
| Long Put Vs Synthetic Call | Bear Put Spread Vs Synthetic Call | |
| Long Put Vs Short Call | Bear Put Spread Vs Long Put | |
| Long Put Vs Long Call | Bear Put Spread Vs Long Call | |
| Long Put Vs Covered Call | Bear Put Spread Vs Covered Call | |
| Long Put Vs Covered Put | Bear Put Spread Vs Covered Put | |
| Long Put Vs Protective Call | Bear Put Spread Vs Protective Call | |
| Long Put Vs Short Box | Bear Put Spread Vs Short Box | |
| Long Put Vs Long Call Condor | Bear Put Spread Vs Long Call Condor | |
| Long Put Vs Short Call Condor | Bear Put Spread Vs Short Call Condor | |
| Long Put Vs Box Spread | Bear Put Spread Vs Box Spread | |
| Long Put Vs Short Strangle | Bear Put Spread Vs Short Strangle | |
| Long Put Vs Long Strangle | Bear Put Spread Vs Long Strangle | |
| Long Put Vs Collar Strategy | Bear Put Spread Vs Collar Strategy | |
| Long Put Vs Long Straddle | Bear Put Spread Vs Long Straddle | |
| Long Put Vs Short Straddle | Bear Put Spread Vs Short Straddle | |
| Long Put Vs Long Call Butterfly | Bear Put Spread Vs Long Call Butterfly | |
| Long Put Vs Short Call Butterfly | Bear Put Spread Vs Short Call Butterfly | |
| Long Put Vs Bear Call Spread | Bear Put Spread Vs Bear Call Spread | |
| Long Put Vs Bear Put Spread | Bear Put Spread Vs Short Call | |
| Long Put Vs Bull Call Spread | Bear Put Spread Vs Bull Call Spread | |
| Long Put Vs Bull Put Spread | Bear Put Spread Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Long Put Vs Bear Put 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. At the same time, if you are looking to make some money from a market decline and can take some basic risk – then Bear Put Spread options strategy makes sense to you.
This needs to be known that the profit you get using this strategy is also limited in scope.
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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