SHORT GUTS	SHORT PUT
About Strategy	Short Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in the positions. < Read more..	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

SHORT GUTS Vs SHORT PUT - Details

	SHORT GUTS	SHORT PUT
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Strike Price - Premium

SHORT GUTS Vs SHORT PUT - When & How to use ?

	SHORT GUTS	SHORT PUT
Market View	Neutral	Bullish
When to use?	This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future.	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Sell 1 ITM Call, Sell 1 ITM Put	Sell Put Option
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Strike Price - Premium

SHORT GUTS Vs SHORT PUT - Risk & Reward

	SHORT GUTS	SHORT PUT
Maximum Profit Scenario	Net Premium Received + Strike Price of Short Put - Strike Price of Short Call - Commissions Paid	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Price of Underlying - Strike Price of Short Call - Net Premium Received OR Strike Price of Short Put - Price of Underlying - Net Premium Received + Commissions Paid	Unlimited (When the price of the underlying falls.)
Risk	Unlimited	Unlimited
Reward	Limited	Limited

SHORT GUTS Vs SHORT PUT - Strategy Pros & Cons

	SHORT GUTS	SHORT PUT
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Bull Put Spread, Short Starddle
Disadvantage	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.