SHORT PUT	SHORT STRANGLE
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..	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..

SHORT PUT Vs SHORT STRANGLE - Details

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

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

	SHORT PUT	SHORT STRANGLE
Market View	Bullish	Neutral
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Sell Put Option	Sell OTM Call, Sell OTM Put
Breakeven Point	Strike Price - Premium	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

SHORT PUT Vs SHORT STRANGLE - Risk & Reward

	SHORT PUT	SHORT STRANGLE
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Maximum Profit = Net Premium Received
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Unlimited	Unlimited
Reward	Limited	Limited

SHORT PUT Vs SHORT STRANGLE - Strategy Pros & Cons

	SHORT PUT	SHORT STRANGLE
Similar Strategies	Bull Put Spread, Short Starddle	Short Straddle, Long Strangle
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
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.	• 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.