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 Bear 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 Bear 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 Bear Put Spread Vs Long Combo comparison:
| Comparison Aspect | Bear Put Spread | Long Combo |
| View |  |  |
| Strategy Introduction | 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 | 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 |
| Investor Obligation | 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. | The strategy expects low initial investment, however, the trader needs to pay the premium on the trades irrespective of the trade result. |
| Market Position | Moderately Bearish | Bullish |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Put | Put, Call |
| Number of Positions | 2 | 2 |
| Action Needed | Buy ITM Put, Sell OTM Put | Sell One OTM Put, Buy One OTM Call |
| Risk for You | Limited | Unlimited |
| Profit Potential | Limited | Unlimited |
| Break Even Point for Investor | Strike Price of Long Put MINUS Net Premium | Call Strike + Net Premium |
| Investor Intention | Let Put Options Expire Worthlessly | Low Upfront Investments, High ROI |
| Investor Expectation | Market Prices to go Down | Price of Stocks Go Up |
| Strategy Summary | Limit Your Losses | Complex |
| Advantages | Limited Risk, Capped Losses | Low Upfront Investment, Unlimited Profits |
| Disadvantages | Limited Profit | Unlimited Loss, High Premium |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 2 | 1 |
| Also called as | NA | NA |
| More Comparisons | Bear Put Spread Vs Short Put | Long Combo Vs Short Put |
| Bear Put Spread Vs Long Combo | Long Combo Vs Long Put | |
| Bear Put Spread Vs Synthetic Call | Long Combo Vs Synthetic Call | |
| Bear Put Spread Vs Long Put | Long Combo Vs Short Call | |
| Bear Put Spread Vs Long Call | Long Combo Vs Long Call | |
| Bear Put Spread Vs Covered Call | Long Combo Vs Covered Call | |
| Bear Put Spread Vs Covered Put | Long Combo Vs Covered Put | |
| Bear Put Spread Vs Protective Call | Long Combo Vs Protective Call | |
| Bear Put Spread Vs Short Box | Long Combo Vs Short Box | |
| Bear Put Spread Vs Long Call Condor | Long Combo Vs Long Call Condor | |
| Bear Put Spread Vs Short Call Condor | Long Combo Vs Short Call Condor | |
| Bear Put Spread Vs Box Spread | Long Combo Vs Box Spread | |
| Bear Put Spread Vs Short Strangle | Long Combo Vs Short Strangle | |
| Bear Put Spread Vs Long Strangle | Long Combo Vs Long Strangle | |
| Bear Put Spread Vs Collar Strategy | Long Combo Vs Collar Strategy | |
| Bear Put Spread Vs Long Straddle | Long Combo Vs Long Straddle | |
| Bear Put Spread Vs Short Straddle | Long Combo Vs Short Straddle | |
| Bear Put Spread Vs Long Call Butterfly | Long Combo Vs Long Call Butterfly | |
| Bear Put Spread Vs Short Call Butterfly | Long Combo Vs Short Call Butterfly | |
| Bear Put Spread Vs Bear Call Spread | Long Combo Vs Bear Call Spread | |
| Bear Put Spread Vs Short Call | Long Combo Vs Bear Put Spread | |
| Bear Put Spread Vs Bull Call Spread | Long Combo Vs Bull Call Spread | |
| Bear Put Spread Vs Bull Put Spread | Long Combo Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Bear Put Spread Vs Long Combo option strategies.
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.
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 both of these strategies is also limited in scope.
Furthermore, as told 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.
