PUT BACKSPREAD	SHORT PUT
About Strategy	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. 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..

PUT BACKSPREAD Vs SHORT PUT - Details

	PUT BACKSPREAD	SHORT PUT
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginners
Reward Profile		Limited
Risk Profile		Unlimited
Breakeven Point		Strike Price - Premium

PUT BACKSPREAD Vs SHORT PUT - When & How to use ?

	PUT BACKSPREAD	SHORT PUT
Market View	Bearish	Bullish
When to use?		This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action		Sell Put Option
Breakeven Point		Strike Price - Premium

PUT BACKSPREAD Vs SHORT PUT - Risk & Reward

	PUT BACKSPREAD	SHORT PUT
Maximum Profit Scenario		Premium received in your account when you sell the Put Option.
Maximum Loss Scenario		Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Unlimited	Limited

PUT BACKSPREAD Vs SHORT PUT - Strategy Pros & Cons

	PUT BACKSPREAD	SHORT PUT
Similar Strategies		Bull Put Spread, Short Starddle
Disadvantage		• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages		• 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.