THE COLLAR	SHORT PUT
About Strategy	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op 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..

THE COLLAR Vs SHORT PUT - Details

	THE COLLAR	SHORT PUT
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option) + Underlying	PE (Put Option)
Number Of Positions	3	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Price of Features - Call Premium + Put Premium	Strike Price - Premium

THE COLLAR Vs SHORT PUT - When & How to use ?

	THE COLLAR	SHORT PUT
Market View	Bullish	Bullish
When to use?	It should be used only in case where trader is certain about the bearish market view.	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option	Sell Put Option
Breakeven Point	Price of Features - Call Premium + Put Premium	Strike Price - Premium

THE COLLAR Vs SHORT PUT - Risk & Reward

	THE COLLAR	SHORT PUT
Maximum Profit Scenario	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received	Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Limited	Limited

THE COLLAR Vs SHORT PUT - Strategy Pros & Cons

	THE COLLAR	SHORT PUT
Similar Strategies	Call Spread, Bull Put Spread	Bull Put Spread, Short Starddle
Disadvantage	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.	• 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.