SHORT PUT	STRAP
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..	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..

SHORT PUT Vs STRAP - Details

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

SHORT PUT Vs STRAP - When & How to use ?

	SHORT PUT	STRAP
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.	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.
Action	Sell Put Option	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Strike Price - Premium	Strike Price of Calls/Puts + (Net Premium Paid/2)

SHORT PUT Vs STRAP - Risk & Reward

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

SHORT PUT Vs STRAP - Strategy Pros & Cons

	SHORT PUT	STRAP
Similar Strategies	Bull Put Spread, Short Starddle	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• To generate profit, there should be significant change in share price. • Expensive strategy.
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.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.