SHORT STRADDLE	STRIP
About Strategy	Short Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an Read more..	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the .. Read more..

SHORT STRADDLE Vs STRIP - Details

	SHORT STRADDLE	STRIP
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

SHORT STRADDLE Vs STRIP - When & How to use ?

	SHORT STRADDLE	STRIP
Market View	Neutral	Neutral
When to use?	This strategy is work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.
Action	Sell Call Option, Sell Put Option	Buy 1 ATM Call, Buy 2 ATM Puts
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

SHORT STRADDLE Vs STRIP - Risk & Reward

	SHORT STRADDLE	STRIP
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Net Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT STRADDLE Vs STRIP - Strategy Pros & Cons

	SHORT STRADDLE	STRIP
Similar Strategies	Short Strangle	Strap, Short Put Ladder
Disadvantage	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
Advantages	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.