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 Bull Put Spread Vs Long Combo 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 Bull Put Spread Vs Long Combo 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 Bull Put Spread Vs Long Combo comparison:
| Comparison Aspect | Long Combo | Bull Put Spread |
| View |  |  |
| Strategy Introduction | The long combo is used when the investor is bullish towards the market and is certain that the prices of the shares will go up...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 expects low initial investment, however, the trader needs to pay the premium on the trades irrespective of the trade result. | 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 | Bullish | Moderately Bullish |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Put, Call | Put |
| Number of Positions | 2 | 2 |
| Action Needed | Sell One OTM Put, Buy One OTM Call | Buy OTM Put, Sell ITM Put |
| Risk for You | Unlimited | Limited |
| Profit Potential | Unlimited | Limited |
| Break Even Point for Investor | Call Strike + Net Premium | Strike price of short put MINUS net premium paid |
| Investor Intention | Low Upfront Investments, High ROI | Let Options Expire Worthlessly |
| Investor Expectation | Price of Stocks Go Up | Market Prices to Go Up |
| Strategy Summary | Complex | Limited Risk, Limited Gains |
| Advantages | Low Upfront Investment, Unlimited Profits | Limited Risk |
| Disadvantages | Unlimited Loss, High Premium | Limited Profit |
| Market Scenarios - Profit | 1 | 3 |
| Market Scenarios - Loss | 1 | 2 |
| Also called as | NA | NA |
| More Comparisons | Long Combo Vs Short Put | Bull Put Spread Vs Short Put |
| Long Combo Vs Long Put | Bull Put Spread Vs Long Combo | |
| Long Combo Vs Synthetic Call | Bull Put Spread Vs Synthetic Call | |
| Long Combo Vs Short Call | Bull Put Spread Vs Long Put | |
| Long Combo Vs Long Call | Bull Put Spread Vs Long Call | |
| Long Combo Vs Covered Call | Bull Put Spread Vs Covered Call | |
| Long Combo Vs Covered Put | Bull Put Spread Vs Covered Put | |
| Long Combo Vs Protective Call | Bull Put Spread Vs Protective Call | |
| Long Combo Vs Short Box | Bull Put Spread Vs Short Box | |
| Long Combo Vs Long Call Condor | Bull Put Spread Vs Long Call Condor | |
| Long Combo Vs Short Call Condor | Bull Put Spread Vs Short Call Condor | |
| Long Combo Vs Box Spread | Bull Put Spread Vs Box Spread | |
| Long Combo Vs Short Strangle | Bull Put Spread Vs Short Strangle | |
| Long Combo Vs Long Strangle | Bull Put Spread Vs Long Strangle | |
| Long Combo Vs Collar Strategy | Bull Put Spread Vs Collar Strategy | |
| Long Combo Vs Long Straddle | Bull Put Spread Vs Long Straddle | |
| Long Combo Vs Short Straddle | Bull Put Spread Vs Short Straddle | |
| Long Combo Vs Long Call Butterfly | Bull Put Spread Vs Long Call Butterfly | |
| Long Combo Vs Short Call Butterfly | Bull Put Spread Vs Short Call Butterfly | |
| Long Combo Vs Bear Call Spread | Bull Put Spread Vs Bear Call Spread | |
| Long Combo Vs Bear Put Spread | Bull Put Spread Vs Bear Put Spread | |
| Long Combo Vs Bull Call Spread | Bull Put Spread Vs Bull Call Spread | |
| Long Combo Vs Bull Put Spread | Bull Put Spread Vs Short Call |
Thus, with this, we wrap up our comparison on Bull Put Spread Vs Long Combo 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.
If you are looking to put minimal initial investment and are open for unlimited profits as well as risks, then Long Combo options strategy can work wonders for you.
Furthermore, as told above, it also depends on the market situation.
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