SHORT GUTS	LONG PUT
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..	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 GUTS Vs LONG PUT - Details

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

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

	SHORT GUTS	LONG PUT
Market View	Neutral	Bearish
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.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Sell 1 ITM Call, Sell 1 ITM Put	Buy 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	Strike Price of Long Put - Premium Paid

SHORT GUTS Vs LONG PUT - Risk & Reward

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

SHORT GUTS Vs LONG PUT - Strategy Pros & Cons

	SHORT GUTS	LONG PUT
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Protective Call, Short Put
Disadvantage	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
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.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.