COVERED CALL	SHORT 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..	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..

COVERED CALL Vs SHORT PUT - Details

	COVERED CALL	SHORT 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	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Purchase Price of Underlying- Premium Received	Strike Price - Premium

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

	COVERED CALL	SHORT 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 works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	(Buy Underlying) (Sell OTM Call Option)	Sell Put Option
Breakeven Point	Purchase Price of Underlying- Premium Received	Strike Price - Premium

COVERED CALL Vs SHORT PUT - Risk & Reward

	COVERED CALL	SHORT PUT
Maximum Profit Scenario	[Call Strike Price - Stock Price Paid] + Premium Received	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Purchase Price of Underlying - Price of Underlying) + Premium Received	Unlimited (When the price of the underlying falls.)
Risk	Unlimited	Unlimited
Reward	Limited	Limited

COVERED CALL Vs SHORT PUT - Strategy Pros & Cons

	COVERED CALL	SHORT PUT
Similar Strategies	Bull Call Spread	Bull Put Spread, Short Starddle
Disadvantage	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
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.	• 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.