SHORT STRANGLE	MARRIED PUT
About Strategy	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if Read more..	Married Put Option Strategy This strategy is applied when trader goes long on the underlying asset i.e. he buys the stock in cash market. He has a bullish view and expects the market to rise in the near future, but simultaneously has the fear of downward movement of the markets. In order to cover his position from vulnerabilities he buys one ATM Put Option of the same underlying asset. Here, a trader wi .. Read more..

SHORT STRANGLE Vs MARRIED PUT - Details

	SHORT STRANGLE	MARRIED PUT
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Purchase Price of Underlying + Premium Paid

SHORT STRANGLE Vs MARRIED PUT - When & How to use ?

	SHORT STRANGLE	MARRIED PUT
Market View	Neutral	Bullish
When to use?	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.	This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	Sell OTM Call, Sell OTM Put	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Purchase Price of Underlying + Premium Paid

SHORT STRANGLE Vs MARRIED PUT - Risk & Reward

	SHORT STRANGLE	MARRIED PUT
Maximum Profit Scenario	Maximum Profit = Net Premium Received	Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received	Max Loss = Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT STRANGLE Vs MARRIED PUT - Strategy Pros & Cons

	SHORT STRANGLE	MARRIED PUT
Similar Strategies	Short Straddle, Long Strangle	Long Call
Disadvantage	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.	Cost of the put options eats into profit margin.
Advantages	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.	Unlimited Profit and Limited Risk