LONG PUT	SHORT CALL
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< Read more..	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

LONG PUT Vs SHORT CALL - Details

	LONG PUT	SHORT CALL
Market View	Bearish	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	1
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike Price of Long Put - Premium Paid	Strike Price of Short Call + Premium Received

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

	LONG PUT	SHORT CALL
Market View	Bearish	Bearish
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Buy Put Option	Sell or Write Call Option
Breakeven Point	Strike Price of Long Put - Premium Paid	Strike Price of Short Call + Premium Received

LONG PUT Vs SHORT CALL - Risk & Reward

	LONG PUT	SHORT CALL
Maximum Profit Scenario	Profit = Strike Price of Long Put - Premium Paid	Max Profit = Premium Received
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

LONG PUT Vs SHORT CALL - Strategy Pros & Cons

	LONG PUT	SHORT CALL
Similar Strategies	Protective Call, Short Put	Covered Put, Covered Calls
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.