LONG PUT	STRAP
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< Read more..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

LONG PUT Vs STRAP - Details

	LONG PUT	STRAP
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	3
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Strike Price of Long Put - Premium Paid	Strike Price of Calls/Puts + (Net Premium Paid/2)

LONG PUT Vs STRAP - When & How to use ?

	LONG PUT	STRAP
Market View	Bearish	Neutral
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.
Action	Buy Put Option	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Strike Price of Long Put - Premium Paid	Strike Price of Calls/Puts + (Net Premium Paid/2)

LONG PUT Vs STRAP - Risk & Reward

	LONG PUT	STRAP
Maximum Profit Scenario	Profit = Strike Price of Long Put - Premium Paid	UNLIMITED
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG PUT Vs STRAP - Strategy Pros & Cons

	LONG PUT	STRAP
Similar Strategies	Protective Call, Short Put	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• To generate profit, there should be significant change in share price. • Expensive strategy.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.