COVERED PUT	MARRIED 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..	Married Put Option Strategy This strategy is applied when trader goes long on the underlying asset i.e. he buys the stock in cash market. He has a bullish view and expects the market to rise in the near future, but simultaneously has the fear of downward movement of the markets. In order to cover his position from vulnerabilities he buys one ATM Put Option of the same underlying asset. Here, a trader wi .. Read more..

COVERED PUT Vs MARRIED PUT - Details

	COVERED PUT	MARRIED PUT
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option) + Underlying	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Futures Price + Premium Received	Purchase Price of Underlying + Premium Paid

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

	COVERED PUT	MARRIED PUT
Market View	Bearish	Bullish
When to use?	The Covered Put works well when the market is moderately Bearish.	This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	Sell Underlying Sell OTM Put Option	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Futures Price + Premium Received	Purchase Price of Underlying + Premium Paid

COVERED PUT Vs MARRIED PUT - Risk & Reward

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

COVERED PUT Vs MARRIED PUT - Strategy Pros & Cons

	COVERED PUT	MARRIED PUT
Similar Strategies	Bear Put Spread, Bear Call Spread	Long Call
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	Cost of the put options eats into profit margin.
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.	Unlimited Profit and Limited Risk