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 Bull 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 Bull 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 Bull Call Spread comparison:
| Comparison Aspect | Long Put | Bull 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 | Bull Call Spread is a vertical options strategy that involves buying and selling two option contracts simultaneously, both with the same underlying security and expiry, but different strike prices...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. | It involves buying and selling two option contracts simultaneously, both with the same underlying security and expiry, but different strike prices. |
| Market Position | Bearish | Moderately Bullish |
| Strategy Level Suitable for | Beginners | Beginners |
| Options Traded | Put | Call |
| Number of Positions | 1 | 2 |
| Action Needed | Buy Put Option | 1 ATM Call, 1 OTM Call |
| Risk for You | Limited | Limited |
| Profit Potential | Unlimited | Limited |
| Break Even Point for Investor | Strike Price MINUS Premium | Strike price of Purchased Call + Net premium paid |
| Investor Intention | Let Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Prices of Assets go down | Prices of the securities to Go Up moderately |
| Strategy Summary | Effective | Safe Play |
| Advantages | Unlimited Profits, Profits possible even in Bearish Market | Limited Risk |
| Disadvantages | High Premium | Capped Profit |
| Market Scenarios - Profit | 2 | 3 |
| Market Scenarios - Loss | 1 | 2 |
| Also called as | NA | NA |
| More Comparisons | Long Put Vs Short Put | Bull Call Spread Vs Short Put |
| Long Put Vs Long Combo | Bull Call Spread Vs Long Combo | |
| Long Put Vs Synthetic Call | Bull Call Spread Vs Synthetic Call | |
| Long Put Vs Short Call | Bull Call Spread Vs Long Put | |
| Long Put Vs Long Call | Bull Call Spread Vs Long Call | |
| Long Put Vs Covered Call | Bull Call Spread Vs Covered Call | |
| Long Put Vs Covered Put | Bull Call Spread Vs Covered Put | |
| Long Put Vs Protective Call | Bull Call Spread Vs Protective Call | |
| Long Put Vs Short Box | Bull Call Spread Vs Short Box | |
| Long Put Vs Long Call Condor | Bull Call Spread Vs Long Call Condor | |
| Long Put Vs Short Call Condor | Bull Call Spread Vs Short Call Condor | |
| Long Put Vs Box Spread | Bull Call Spread Vs Box Spread | |
| Long Put Vs Short Strangle | Bull Call Spread Vs Short Strangle | |
| Long Put Vs Long Strangle | Bull Call Spread Vs Long Strangle | |
| Long Put Vs Collar Strategy | Bull Call Spread Vs Collar Strategy | |
| Long Put Vs Long Straddle | Bull Call Spread Vs Long Straddle | |
| Long Put Vs Short Straddle | Bull Call Spread Vs Short Straddle | |
| Long Put Vs Long Call Butterfly | Bull Call Spread Vs Long Call Butterfly | |
| Long Put Vs Short Call Butterfly | Bull Call Spread Vs Short Call Butterfly | |
| Long Put Vs Bear Call Spread | Bull Call Spread Vs Bear Call Spread | |
| Long Put Vs Bear Put Spread | Bull Call Spread Vs Bear Put Spread | |
| Long Put Vs Bull Call Spread | Bull Call Spread Vs Short Call | |
| Long Put Vs Bull Put Spread | Bull Call Spread Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Long Put Vs Bull 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. At the same time, if you are in a moderately bullish market set-up and have a limited market risk appetite then you make consider using the Bull Call Spread strategy in your trades.
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.
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.
