Option Strategy for Neutral to Bullish View

This strategy is initiated with flat to positive view in the underlying assets.

It is used when the option trader believes that the underlying assets will rise moderately or hold steady in the near term.

The probability of making money is 67%.

Strategy	Sell one At the money Put and buy one Out of the money Put
Market Outlook	Neutral to Bullish
Motive	Earn income with limited risk
Risk	Difference between the two strike price
Reward	Limited to premium received
Break even at expiry	Strike price of Short Put  - Net premium received

Example: CADILA 

Buy 400 PE and Sell 410 PE

NIFTY 

Buy 11550 PE and Sell 11500 PE