SHORT PUT	LONG PUT
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 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 PUT Vs LONG PUT - Details

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

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

	SHORT PUT	LONG PUT
Market View	Bullish	Bearish
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	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 Put Option	Buy Put Option
Breakeven Point	Strike Price - Premium	Strike Price of Long Put - Premium Paid

SHORT PUT Vs LONG PUT - Risk & Reward

	SHORT PUT	LONG PUT
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Max Loss = Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT PUT Vs LONG PUT - Strategy Pros & Cons

	SHORT PUT	LONG PUT
Similar Strategies	Bull Put Spread, Short Starddle	Protective Call, Short Put
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
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.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.