SHORT STRADDLE	CALL BACKSPREAD
About Strategy	Short Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an Read more..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

SHORT STRADDLE Vs CALL BACKSPREAD - Details

	SHORT STRADDLE	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

SHORT STRADDLE Vs CALL BACKSPREAD - When & How to use ?

	SHORT STRADDLE	CALL BACKSPREAD
Market View	Neutral	Bullish
When to use?	This strategy is work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Sell Call Option, Sell Put Option	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

SHORT STRADDLE Vs CALL BACKSPREAD - Risk & Reward

	SHORT STRADDLE	CALL BACKSPREAD
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT STRADDLE Vs CALL BACKSPREAD - Strategy Pros & Cons

	SHORT STRADDLE	CALL BACKSPREAD
Similar Strategies	Short Strangle	-
Disadvantage	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.
Advantages	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .	• Unlimited profit potential.