SHORT CALL	LONG PUT
About Strategy	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy 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 CALL Vs LONG PUT - Details

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

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

	SHORT CALL	LONG PUT
Market View	Bearish	Bearish
When to use?	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.	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 or Write Call Option	Buy Put Option
Breakeven Point	Strike Price of Short Call + Premium Received	Strike Price of Long Put - Premium Paid

SHORT CALL Vs LONG PUT - Risk & Reward

	SHORT CALL	LONG PUT
Maximum Profit Scenario	Max Profit = Premium Received	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received	Max Loss = Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT CALL Vs LONG PUT - Strategy Pros & Cons

	SHORT CALL	LONG PUT
Similar Strategies	Covered Put, Covered Calls	Protective Call, Short Put
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.