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Comparision (SHORT PUT VS SHORT PUT)

 

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  SHORT PUT SHORT PUT
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.

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.

SHORT PUT Vs SHORT PUT - Details

SHORT PUT SHORT PUT
Market View Bullish Bullish
Type (CE/PE) PE (Put Option) PE (Put Option)
Number Of Positions 1 1
Strategy Level Beginners Beginners
Reward Profile Limited Limited
Risk Profile Unlimited Unlimited
Breakeven Point Strike Price - Premium Strike Price - Premium

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

SHORT PUT SHORT PUT
Market View Bullish Bullish
When to use? This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level. This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action Sell Put Option Sell Put Option
Breakeven Point Strike Price - Premium Strike Price - Premium

SHORT PUT Vs SHORT PUT - Risk & Reward

SHORT PUT SHORT PUT
Maximum Profit Scenario Premium received in your account when you sell the Put Option. Premium received in your account when you sell the Put Option.
Maximum Loss Scenario Unlimited (When the price of the underlying falls.) Unlimited (When the price of the underlying falls.)
Risk Unlimited Unlimited
Reward Limited Limited

SHORT PUT Vs SHORT PUT - Strategy Pros & Cons

SHORT PUT SHORT PUT
Similar Strategies Bull Put Spread, Short Starddle Bull Put Spread, Short Starddle
Disadvantage • Unlimited risk. • Huge losses if the price of the underlying stock falls steeply. • Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
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. • 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.

SHORT PUT

SHORT PUT