SHORT STRADDLE	LONG PUT
About Strategy	Short Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an Read more..	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..

SHORT STRADDLE Vs LONG PUT - Details

	SHORT STRADDLE	LONG PUT
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Strike Price of Long Put - Premium Paid

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

	SHORT STRADDLE	LONG PUT
Market View	Neutral	Bearish
When to use?	This strategy is work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Sell Call Option, Sell Put Option	Buy Put Option
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Strike Price of Long Put - Premium Paid

SHORT STRADDLE Vs LONG PUT - Risk & Reward

	SHORT STRADDLE	LONG PUT
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Max Loss = Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT STRADDLE Vs LONG PUT - Strategy Pros & Cons

	SHORT STRADDLE	LONG PUT
Similar Strategies	Short Strangle	Protective Call, Short Put
Disadvantage	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.