STRAP	LONG PUT
About Strategy	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin 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..

STRAP Vs LONG PUT - Details

	STRAP	LONG PUT
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	3	1
Strategy Level	Beginners	Beginners
Reward Profile	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid	Unlimited
Risk Profile	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts	Limited
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Strike Price of Long Put - Premium Paid

STRAP Vs LONG PUT - When & How to use ?

	STRAP	LONG PUT
Market View	Neutral	Bearish
When to use?	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Buy 2 ATM Call Option, Buy 1 ATM Put Option	Buy Put Option
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Strike Price of Long Put - Premium Paid

STRAP Vs LONG PUT - Risk & Reward

	STRAP	LONG PUT
Maximum Profit Scenario	UNLIMITED	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Net Premium Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

STRAP Vs LONG PUT - Strategy Pros & Cons

	STRAP	LONG PUT
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	Protective Call, Short Put
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.