SHORT PUT	COVERED PUT
About Strategy	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..	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the .. Read more..

SHORT PUT Vs COVERED PUT - Details

	SHORT PUT	COVERED PUT
Market View	Bullish	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option) + Underlying
Number Of Positions	1	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Strike Price - Premium	Futures Price + Premium Received

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

	SHORT PUT	COVERED PUT
Market View	Bullish	Bearish
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	The Covered Put works well when the market is moderately Bearish.
Action	Sell Put Option	Sell Underlying Sell OTM Put Option
Breakeven Point	Strike Price - Premium	Futures Price + Premium Received

SHORT PUT Vs COVERED PUT - Risk & Reward

	SHORT PUT	COVERED PUT
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	The profit happens when the price of the underlying moves above strike price of Short Put.
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Unlimited	Unlimited
Reward	Limited	Limited

SHORT PUT Vs COVERED PUT - Strategy Pros & Cons

	SHORT PUT	COVERED PUT
Similar Strategies	Bull Put Spread, Short Starddle	Bear Put Spread, Bear Call Spread
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
Advantages	• 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.	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.