COVERED PUT	COVERED PUT
About Strategy	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the Read more..	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the .. Read more..

COVERED PUT Vs COVERED PUT - Details

	COVERED PUT	COVERED PUT
Market View	Bearish	Bearish
Type (CE/PE)	PE (Put Option) + Underlying	PE (Put Option) + Underlying
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Futures Price + Premium Received	Futures Price + Premium Received

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

	COVERED PUT	COVERED PUT
Market View	Bearish	Bearish
When to use?	The Covered Put works well when the market is moderately Bearish.	The Covered Put works well when the market is moderately Bearish.
Action	Sell Underlying Sell OTM Put Option	Sell Underlying Sell OTM Put Option
Breakeven Point	Futures Price + Premium Received	Futures Price + Premium Received

COVERED PUT Vs COVERED PUT - Risk & Reward

	COVERED PUT	COVERED PUT
Maximum Profit Scenario	The profit happens when the price of the underlying moves above strike price of Short Put.	The profit happens when the price of the underlying moves above strike price of Short Put.
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - Premium Received	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Unlimited	Unlimited
Reward	Limited	Limited

COVERED PUT Vs COVERED PUT - Strategy Pros & Cons

	COVERED PUT	COVERED PUT
Similar Strategies	Bear Put Spread, Bear Call Spread	Bear Put Spread, Bear Call Spread
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
Advantages	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.