SHORT STRANGLE	SHORT PUT
About Strategy	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 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 Vs SHORT PUT - Details

	SHORT STRANGLE	SHORT PUT
Market View	Neutral	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	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Strike Price - Premium

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

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

SHORT STRANGLE Vs SHORT PUT - Risk & Reward

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

SHORT STRANGLE Vs SHORT PUT - Strategy Pros & Cons

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