COVERED PUT	SHORT PUT
About Strategy	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the Read more..	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..

COVERED PUT Vs SHORT PUT - Details

	COVERED PUT	SHORT PUT
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option) + Underlying	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Futures Price + Premium Received	Strike Price - Premium

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

	COVERED PUT	SHORT PUT
Market View	Bearish	Bullish
When to use?	The Covered Put works well when the market is moderately Bearish.	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Sell Underlying Sell OTM Put Option	Sell Put Option
Breakeven Point	Futures Price + Premium Received	Strike Price - Premium

COVERED PUT Vs SHORT PUT - Risk & Reward

	COVERED PUT	SHORT PUT
Maximum Profit Scenario	The profit happens when the price of the underlying moves above strike price of Short Put.	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - Premium Received	Unlimited (When the price of the underlying falls.)
Risk	Unlimited	Unlimited
Reward	Limited	Limited

COVERED PUT Vs SHORT PUT - Strategy Pros & Cons

	COVERED PUT	SHORT PUT
Similar Strategies	Bear Put Spread, Bear Call Spread	Bull Put Spread, Short Starddle
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.	• 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.