SHORT PUT	MARRIED 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..	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 PUT Vs MARRIED PUT - Details

	SHORT PUT	MARRIED PUT
Market View	Bullish	Bullish
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	Purchase Price of Underlying + Premium Paid

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

	SHORT PUT	MARRIED PUT
Market View	Bullish	Bullish
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 Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	Sell Put Option	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Strike Price - Premium	Purchase Price of Underlying + Premium Paid

SHORT PUT Vs MARRIED PUT - Risk & Reward

	SHORT PUT	MARRIED PUT
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Profit = Price of Underlying - Purchase Price of Underlying - 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 MARRIED PUT - Strategy Pros & Cons

	SHORT PUT	MARRIED PUT
Similar Strategies	Bull Put Spread, Short Starddle	Long Call
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	Cost of the put options eats into profit margin.
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 Profit and Limited Risk