SHORT CALL	MARRIED PUT
About Strategy	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy Read more..	Married Put Option Strategy This strategy is applied when trader goes long on the underlying asset i.e. he buys the stock in cash market. He has a bullish view and expects the market to rise in the near future, but simultaneously has the fear of downward movement of the markets. In order to cover his position from vulnerabilities he buys one ATM Put Option of the same underlying asset. Here, a trader wi .. Read more..

SHORT CALL Vs MARRIED PUT - Details

	SHORT CALL	MARRIED PUT
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	1	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price of Short Call + Premium Received	Purchase Price of Underlying + Premium Paid

SHORT CALL Vs MARRIED PUT - When & How to use ?

	SHORT CALL	MARRIED PUT
Market View	Bearish	Bullish
When to use?	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.	This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	Sell or Write Call Option	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Strike Price of Short Call + Premium Received	Purchase Price of Underlying + Premium Paid

SHORT CALL Vs MARRIED PUT - Risk & Reward

	SHORT CALL	MARRIED PUT
Maximum Profit Scenario	Max Profit = Premium Received	Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received	Max Loss = Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT CALL Vs MARRIED PUT - Strategy Pros & Cons

	SHORT CALL	MARRIED PUT
Similar Strategies	Covered Put, Covered Calls	Long Call
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	Cost of the put options eats into profit margin.
Advantages	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.	Unlimited Profit and Limited Risk