STRAP	MARRIED 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..	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..

STRAP Vs MARRIED PUT - Details

	STRAP	MARRIED PUT
Market View	Neutral	Bullish
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)	Purchase Price of Underlying + Premium Paid

STRAP Vs MARRIED PUT - When & How to use ?

	STRAP	MARRIED PUT
Market View	Neutral	Bullish
When to use?	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.	This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	Buy 2 ATM Call Option, Buy 1 ATM Put Option	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Purchase Price of Underlying + Premium Paid

STRAP Vs MARRIED PUT - Risk & Reward

	STRAP	MARRIED PUT
Maximum Profit Scenario	UNLIMITED	Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Net Premium Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

STRAP Vs MARRIED PUT - Strategy Pros & Cons

	STRAP	MARRIED PUT
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	Long Call
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	Cost of the put options eats into profit margin.
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.	Unlimited Profit and Limited Risk