COVERED PUT	SHORT STRADDLE
About Strategy	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the Read more..	Short Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an .. Read more..

COVERED PUT Vs SHORT STRADDLE - Details

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

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

	COVERED PUT	SHORT STRADDLE
Market View	Bearish	Neutral
When to use?	The Covered Put works well when the market is moderately Bearish.	This strategy is work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.
Action	Sell Underlying Sell OTM Put Option	Sell Call Option, Sell Put Option
Breakeven Point	Futures Price + Premium Received	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

COVERED PUT Vs SHORT STRADDLE - Risk & Reward

	COVERED PUT	SHORT STRADDLE
Maximum Profit Scenario	The profit happens when the price of the underlying moves above strike price of Short Put.	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - Premium Received	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Unlimited	Unlimited
Reward	Limited	Limited

COVERED PUT Vs SHORT STRADDLE - Strategy Pros & Cons

	COVERED PUT	SHORT STRADDLE
Similar Strategies	Bear Put Spread, Bear Call Spread	Short Strangle
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.
Advantages	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .