COVERED CALL	MARRIED PUT
About Strategy	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o 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..

COVERED CALL Vs MARRIED PUT - Details

	COVERED CALL	MARRIED PUT
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Purchase Price of Underlying- Premium Received	Purchase Price of Underlying + Premium Paid

COVERED CALL Vs MARRIED PUT - When & How to use ?

	COVERED CALL	MARRIED PUT
Market View	Bullish	Bullish
When to use?	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.	This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	(Buy Underlying) (Sell OTM Call Option)	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Purchase Price of Underlying- Premium Received	Purchase Price of Underlying + Premium Paid

COVERED CALL Vs MARRIED PUT - Risk & Reward

	COVERED CALL	MARRIED PUT
Maximum Profit Scenario	[Call Strike Price - Stock Price Paid] + Premium Received	Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Purchase Price of Underlying - Price of Underlying) + Premium Received	Max Loss = Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

COVERED CALL Vs MARRIED PUT - Strategy Pros & Cons

	COVERED CALL	MARRIED PUT
Similar Strategies	Bull Call Spread	Long Call
Disadvantage	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.	Cost of the put options eats into profit margin.
Advantages	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.	Unlimited Profit and Limited Risk