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 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 Bull 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 Bull Put Spread comparison:
| Comparison Aspect | Long Put | Bull 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 | 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 |
| 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. | 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. |
| Market Position | Bearish | Moderately Bullish |
| Strategy Level Suitable for | Beginners | Intermediates |
| Options Traded | Put | Put |
| Number of Positions | 1 | 2 |
| Action Needed | Buy Put Option | Buy OTM Put, Sell ITM Put |
| Risk for You | Limited | Limited |
| Profit Potential | Unlimited | Limited |
| Break Even Point for Investor | Strike Price MINUS Premium | Strike price of short put MINUS net premium paid |
| Investor Intention | Let Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Prices of Assets go down | Market Prices to Go Up |
| Strategy Summary | Effective | Limited Risk, Limited Gains |
| Advantages | Unlimited Profits, Profits possible even in Bearish Market | Limited Risk |
| Disadvantages | High Premium | Limited Profit |
| Market Scenarios - Profit | 2 | 3 |
| Market Scenarios - Loss | 1 | 2 |
| Also called as | NA | NA |
| More Comparisons | Long Put Vs Short Put | Bull Put Spread Vs Short Put |
| Long Put Vs Long Combo | Bull Put Spread Vs Long Combo | |
| Long Put Vs Synthetic Call | Bull Put Spread Vs Synthetic Call | |
| Long Put Vs Short Call | Bull Put Spread Vs Long Put | |
| Long Put Vs Long Call | Bull Put Spread Vs Long Call | |
| Long Put Vs Covered Call | Bull Put Spread Vs Covered Call | |
| Long Put Vs Covered Put | Bull Put Spread Vs Covered Put | |
| Long Put Vs Protective Call | Bull Put Spread Vs Protective Call | |
| Long Put Vs Short Box | Bull Put Spread Vs Short Box | |
| Long Put Vs Long Call Condor | Bull Put Spread Vs Long Call Condor | |
| Long Put Vs Short Call Condor | Bull Put Spread Vs Short Call Condor | |
| Long Put Vs Box Spread | Bull Put Spread Vs Box Spread | |
| Long Put Vs Short Strangle | Bull Put Spread Vs Short Strangle | |
| Long Put Vs Long Strangle | Bull Put Spread Vs Long Strangle | |
| Long Put Vs Collar Strategy | Bull Put Spread Vs Collar Strategy | |
| Long Put Vs Long Straddle | Bull Put Spread Vs Long Straddle | |
| Long Put Vs Short Straddle | Bull Put Spread Vs Short Straddle | |
| Long Put Vs Long Call Butterfly | Bull Put Spread Vs Long Call Butterfly | |
| Long Put Vs Short Call Butterfly | Bull Put Spread Vs Short Call Butterfly | |
| Long Put Vs Bear Call Spread | Bull Put Spread Vs Bear Call Spread | |
| Long Put Vs Bear Put Spread | Bull Put Spread Vs Bear Put Spread | |
| Long Put Vs Bull Call Spread | Bull Put Spread Vs Bull Call Spread | |
| Long Put Vs Bull Put Spread | Bull Put Spread Vs Short Call |
Thus, with this, we wrap up our comparison of Long Put Vs Bull 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 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.
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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