COVERED COMBINATION	MARRIED PUT
About Strategy	Covered Combination Option Strategy This strategy involves selling OTM Call & Put Options and buying the underlying asset in either cash or futures market. It is also known as Covered Strangle as the profits are capped and risk is potentially unlimited. Risk: Un 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..

COVERED COMBINATION Vs MARRIED PUT - Details

	COVERED COMBINATION	MARRIED PUT
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2	Purchase Price of Underlying + Premium Paid

COVERED COMBINATION Vs MARRIED PUT - When & How to use ?

	COVERED COMBINATION	MARRIED PUT
Market View	Bullish	Bullish
When to use?	This strategy is mainly suited for investors who are moderately bullish on a stock and are comfortable with increasing their position in the event of a price decline.	This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	Sell 1 OTM Call, Sell 1 OTM Put	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2	Purchase Price of Underlying + Premium Paid

COVERED COMBINATION Vs MARRIED PUT - Risk & Reward

	COVERED COMBINATION	MARRIED PUT
Maximum Profit Scenario	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received - Commissions Paid	Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Purchase Price of Underlying + Strike Price of Short Put - (2 x Price of Underlying) - Max Profit + Commissions Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

COVERED COMBINATION Vs MARRIED PUT - Strategy Pros & Cons

	COVERED COMBINATION	MARRIED PUT
Similar Strategies	Stock Repair Strategy	Long Call
Disadvantage	Combinations can be profitable in sideways or rising markets. Greater combined net credit increases downside protection and potential return.	Cost of the put options eats into profit margin.
Advantages	Limited Maximum Profit on the upside. Covered Combinations should only be traded on stocks that are bullish.	Unlimited Profit and Limited Risk