LONG PUT	SHORT STRANGLE
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< Read more..	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

LONG PUT Vs SHORT STRANGLE - Details

	LONG PUT	SHORT STRANGLE
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike Price of Long Put - Premium Paid	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

LONG PUT Vs SHORT STRANGLE - When & How to use ?

	LONG PUT	SHORT STRANGLE
Market View	Bearish	Neutral
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Buy Put Option	Sell OTM Call, Sell OTM Put
Breakeven Point	Strike Price of Long Put - Premium Paid	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

LONG PUT Vs SHORT STRANGLE - Risk & Reward

	LONG PUT	SHORT STRANGLE
Maximum Profit Scenario	Profit = Strike Price of Long Put - Premium Paid	Maximum Profit = Net Premium Received
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

LONG PUT Vs SHORT STRANGLE - Strategy Pros & Cons

	LONG PUT	SHORT STRANGLE
Similar Strategies	Protective Call, Short Put	Short Straddle, Long Strangle
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.