SHORT PUT	SHORT PUT BUTTERFLY
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. Read more..	Short Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< .. Read more..

SHORT PUT Vs SHORT PUT BUTTERFLY - Details

	SHORT PUT	SHORT PUT BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	1	4
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price - Premium	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

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

	SHORT PUT	SHORT PUT BUTTERFLY
Market View	Bullish	Neutral
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.
Action	Sell Put Option	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put
Breakeven Point	Strike Price - Premium	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

SHORT PUT Vs SHORT PUT BUTTERFLY - Risk & Reward

	SHORT PUT	SHORT PUT BUTTERFLY
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Limited

SHORT PUT Vs SHORT PUT BUTTERFLY - Strategy Pros & Cons

	SHORT PUT	SHORT PUT BUTTERFLY
Similar Strategies	Bull Put Spread, Short Starddle	Short Condor, Reverse Iron Condor
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.
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.	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.