PUT BACKSPREAD	SHORT GUTS
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..	Short Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in the positions. < .. Read more..

PUT BACKSPREAD Vs SHORT GUTS - Details

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

PUT BACKSPREAD Vs SHORT GUTS - When & How to use ?

	PUT BACKSPREAD	SHORT GUTS
Market View	Bearish	Neutral
When to use?		This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future.
Action		Sell 1 ITM Call, Sell 1 ITM Put
Breakeven Point		Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

PUT BACKSPREAD Vs SHORT GUTS - Risk & Reward

	PUT BACKSPREAD	SHORT GUTS
Maximum Profit Scenario		Net Premium Received + Strike Price of Short Put - Strike Price of Short Call - Commissions Paid
Maximum Loss Scenario		Price of Underlying - Strike Price of Short Call - Net Premium Received OR Strike Price of Short Put - Price of Underlying - Net Premium Received + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

PUT BACKSPREAD Vs SHORT GUTS - Strategy Pros & Cons

	PUT BACKSPREAD	SHORT GUTS
Similar Strategies		Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
Disadvantage		• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.
Advantages		• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.