LONG PUT	SHORT PUT
About Strategy	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 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..

LONG PUT Vs SHORT PUT - Details

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

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

	LONG PUT	SHORT PUT
Market View	Bearish	Bullish
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Buy Put Option	Sell Put Option
Breakeven Point	Strike Price of Long Put - Premium Paid	Strike Price - Premium

LONG PUT Vs SHORT PUT - Risk & Reward

	LONG PUT	SHORT PUT
Maximum Profit Scenario	Profit = Strike Price of Long Put - Premium Paid	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Unlimited	Limited

LONG PUT Vs SHORT PUT - Strategy Pros & Cons

	LONG PUT	SHORT PUT
Similar Strategies	Protective Call, Short Put	Bull Put Spread, Short Starddle
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• 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.