SHORT PUT	STRIP
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..	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the .. Read more..

SHORT PUT Vs STRIP - Details

	SHORT PUT	STRIP
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	3
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price - Premium	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

SHORT PUT Vs STRIP - When & How to use ?

	SHORT PUT	STRIP
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.	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.
Action	Sell Put Option	Buy 1 ATM Call, Buy 2 ATM Puts
Breakeven Point	Strike Price - Premium	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

SHORT PUT Vs STRIP - Risk & Reward

	SHORT PUT	STRIP
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Net Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT PUT Vs STRIP - Strategy Pros & Cons

	SHORT PUT	STRIP
Similar Strategies	Bull Put Spread, Short Starddle	Strap, Short Put Ladder
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
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.	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.