LONG STRADDLE	SHORT PUT
About Strategy	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc 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..

LONG STRADDLE Vs SHORT PUT - Details

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

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

	LONG STRADDLE	SHORT PUT
Market View	Neutral	Bullish
When to use?	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Buy Call Option, Buy Put Option	Sell Put Option
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Strike Price - Premium

LONG STRADDLE Vs SHORT PUT - Risk & Reward

	LONG STRADDLE	SHORT PUT
Maximum Profit Scenario	Max profit is achieved when at one option is exercised.	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Maximum Loss = Net Premium Paid	Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Unlimited	Limited

LONG STRADDLE Vs SHORT PUT - Strategy Pros & Cons

	LONG STRADDLE	SHORT PUT
Similar Strategies	Bear Put Spread	Bull Put Spread, Short Starddle
Disadvantage	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.	• 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.