> For the complete documentation index, see [llms.txt](https://docs.earn.polynomial.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.earn.polynomial.fi/vault-strategies/put-selling/vault-strategy.md).
# Vault strategy
Consider the example for the put selling strategy; let's assume the Eth spot price is at $3000 and sell the 2700CE option. Let's check the possible scenarios for the strategy
Strategy setup -
* **Sell 2700PE** and receive $300 as a premium and always remember that it's a far OTM call option.
After we initiate the trade, the market can move in any direction and expire at any level. Therefore let us take up a few scenarios to get a sense of what would happen to the put selling strategy for different levels of expiry.
#### Scenario 1 - Ethereum price expires at $3100 (above the strike price)
The value of the put options would depend upon their intrinsic value. The intrinsic value of a put option upon expiry is –
Max \[0, Strike - Spot] => Max\[0, 2700-3100] = 0
The **2700PE** option has 0 intrinsic value, but since we have sold/written this option, we get to retain the premium of $300.
Put selling strategy payoff would be: $300
#### Scenario 2 - Ethereum price expires at $2700 (at the strike price)
So the maths will look like this-
Max \[0, 2700-2700] = 0
The result would be the same as above. We(Seller) get to retain the premium of $300.
Put selling strategy payoff would be: $300
#### Scenario 3 - Ethereum price expires at $2300 (below the strike price)
We assumed the market to be moderately bullish, but the market comes out as aggressively bearish. In this case, the option seller of the put option will suffer a loss proportional to downward movement.
Maths will look like this -
Max\[0, 2700-2300] = 400
Put selling strategy payoff would be: 300 - 400 = -$100.
Strategy setup - Sell 2700CE
Eth spot price - $3000
Premium= $300
expires at $3100 (above the strike price)
expires at $2700 (at the strike price)
expires at $2300 (below the strike price)
$300
$300
-$100
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:
```
GET https://docs.earn.polynomial.fi/vault-strategies/put-selling/vault-strategy.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.