SHORT GUTS	SHORT STRADDLE
About Strategy	Short Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in the positions. < Read more..	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..

SHORT GUTS Vs SHORT STRADDLE - Details

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

SHORT GUTS Vs SHORT STRADDLE - When & How to use ?

	SHORT GUTS	SHORT STRADDLE
Market View	Neutral	Neutral
When to use?	This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future.	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.
Action	Sell 1 ITM Call, Sell 1 ITM Put	Sell Call Option, Sell Put Option
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

SHORT GUTS Vs SHORT STRADDLE - Risk & Reward

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

SHORT GUTS Vs SHORT STRADDLE - Strategy Pros & Cons

	SHORT GUTS	SHORT STRADDLE
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Short Strangle
Disadvantage	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.
Advantages	• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.	• 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 .