PUT BACKSPREAD	STRIP
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..	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the .. Read more..

PUT BACKSPREAD Vs STRIP - Details

	PUT BACKSPREAD	STRIP
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	3
Strategy Level	Advance	Beginners
Reward Profile		Unlimited
Risk Profile		Limited
Breakeven Point		Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

PUT BACKSPREAD Vs STRIP - When & How to use ?

	PUT BACKSPREAD	STRIP
Market View	Bearish	Neutral
When to use?		When a trader is bearish on the market and bullish on volatility then he will implement this strategy.
Action		Buy 1 ATM Call, Buy 2 ATM Puts
Breakeven Point		Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

PUT BACKSPREAD Vs STRIP - Risk & Reward

	PUT BACKSPREAD	STRIP
Maximum Profit Scenario		Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid
Maximum Loss Scenario		Net Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PUT BACKSPREAD Vs STRIP - Strategy Pros & Cons

	PUT BACKSPREAD	STRIP
Similar Strategies		Strap, Short Put Ladder
Disadvantage		Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
Advantages		Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.