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 Short Box 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 Short Box 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 Short Box Vs Bull Put Spread comparison:
| Comparison Aspect | Bull Put Spread | Short Box |
| 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 | Short Box involves selling a bull call spread along with a bear put spread, both at the same strike prices and expiration date, so that both the spreads balance each other out and create an arbitrage...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. | Recognize Put Call Parity distrubance as soon as possible and take positions to capture the movement. |
| Market Position | Moderately Bullish | Neutral |
| Strategy Level Suitable for | Intermediates | Experts |
| Options Traded | Put | 1 Short ITM Call, 1 Long OTM Call, 1 Short ITM Put, 1 Long OTM Put |
| Number of Positions | 2 | 4 |
| Action Needed | Buy OTM Put, Sell ITM Put | Sell bull call spread along with a Bear put spread |
| Risk for You | Limited | None |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Strike price of short put MINUS net premium paid | Not Required, Almost No Risk/Loss |
| Investor Intention | Let Options Expire Worthlessly | Take Positions at the right time and capture the profit. |
| Investor Expectation | Market Prices to Go Up | Profits generated from the strategy will be enough to compensate for the commissions and brokerages paid |
| Strategy Summary | Limited Risk, Limited Gains | Complicated |
| Advantages | Limited Risk | No Capital Needed, Zero Risk |
| Disadvantages | Limited Profit | Low Profit |
| Market Scenarios - Profit | 3 | 3 |
| Market Scenarios - Loss | 2 | 0 |
| Also called as | NA | NA |
| More Comparisons | Bull Put Spread Vs Short Put | Short Box Vs Short Put |
| Bull Put Spread Vs Long Combo | Short Box Vs Long Combo | |
| Bull Put Spread Vs Synthetic Call | Short Box Vs Synthetic Call | |
| Bull Put Spread Vs Long Put | Short Box Vs Long Put | |
| Bull Put Spread Vs Long Call | Short Box Vs Long Call | |
| Bull Put Spread Vs Covered Call | Short Box Vs Covered Call | |
| Bull Put Spread Vs Covered Put | Short Box Vs Covered Put | |
| Bull Put Spread Vs Protective Call | Short Box Vs Protective Call | |
| Bull Put Spread Vs Short Box | Short Box Vs Short Call | |
| Bull Put Spread Vs Long Call Condor | Short Box Vs Long Call Condor | |
| Bull Put Spread Vs Short Call Condor | Short Box Vs Short Call Condor | |
| Bull Put Spread Vs Box Spread | Short Box Vs Box Spread | |
| Bull Put Spread Vs Short Strangle | Short Box Vs Short Strangle | |
| Bull Put Spread Vs Long Strangle | Short Box Vs Long Strangle | |
| Bull Put Spread Vs Collar Strategy | Short Box Vs Collar Strategy | |
| Bull Put Spread Vs Long Straddle | Short Box Vs Long Straddle | |
| Bull Put Spread Vs Short Straddle | Short Box Vs Short Straddle | |
| Bull Put Spread Vs Long Call Butterfly | Short Box Vs Long Call Butterfly | |
| Bull Put Spread Vs Short Call Butterfly | Short Box Vs Short Call Butterfly | |
| Bull Put Spread Vs Bear Call Spread | Short Box Vs Bear Call Spread | |
| Bull Put Spread Vs Bear Put Spread | Short Box Vs Bear Put Spread | |
| Bull Put Spread Vs Bull Call Spread | Short Box Vs Bull Call Spread | |
| Bull Put Spread Vs Short Call | Short Box Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Short Box Vs Bull Put Spread 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.
Remember, the Short box strategy has no risk but provides a consistent (and limited) profits to your trades. To add to that, it is a relatively complex strategy too.
Furthermore, as said above, it also depends on the market situation.
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