SHORT PUT	LONG STRADDLE
About Strategy	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 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 Vs LONG STRADDLE - Details

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

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

	SHORT PUT	LONG STRADDLE
Market View	Bullish	Neutral
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	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.
Action	Sell Put Option	Buy Call Option, Buy Put Option
Breakeven Point	Strike Price - Premium	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

SHORT PUT Vs LONG STRADDLE - Risk & Reward

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

SHORT PUT Vs LONG STRADDLE - Strategy Pros & Cons

	SHORT PUT	LONG STRADDLE
Similar Strategies	Bull Put Spread, Short Starddle	Bear Put Spread
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• 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.
Advantages	• 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.	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.