SHORT PUT	SHORT CALL
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 Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

SHORT PUT Vs SHORT CALL - Details

	SHORT PUT	SHORT CALL
Market View	Bullish	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	1
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Strike Price - Premium	Strike Price of Short Call + Premium Received

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

	SHORT PUT	SHORT CALL
Market View	Bullish	Bearish
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Sell Put Option	Sell or Write Call Option
Breakeven Point	Strike Price - Premium	Strike Price of Short Call + Premium Received

SHORT PUT Vs SHORT CALL - Risk & Reward

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

SHORT PUT Vs SHORT CALL - Strategy Pros & Cons

	SHORT PUT	SHORT CALL
Similar Strategies	Bull Put Spread, Short Starddle	Covered Put, Covered Calls
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
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.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.