SHORT PUT	PUT BACKSPREAD
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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

SHORT PUT Vs PUT BACKSPREAD - Details

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

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

	SHORT PUT	PUT BACKSPREAD
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.
Action	Sell Put Option
Breakeven Point	Strike Price - Premium

SHORT PUT Vs PUT BACKSPREAD - Risk & Reward

	SHORT PUT	PUT BACKSPREAD
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT PUT Vs PUT BACKSPREAD - Strategy Pros & Cons

	SHORT PUT	PUT BACKSPREAD
Similar Strategies	Bull Put Spread, Short Starddle
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
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.