PUT BACKSPREAD	LONG CALL BUTTERFLY
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..	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho .. Read more..

PUT BACKSPREAD Vs LONG CALL BUTTERFLY - Details

	PUT BACKSPREAD	LONG CALL BUTTERFLY
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	4
Strategy Level	Advance	Advance
Reward Profile		Limited
Risk Profile		Limited
Breakeven Point		Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

PUT BACKSPREAD Vs LONG CALL BUTTERFLY - When & How to use ?

	PUT BACKSPREAD	LONG CALL BUTTERFLY
Market View	Bearish	Neutral
When to use?		This strategy should be used when you're expecting no volatility in the price of the underlying.
Action		Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call
Breakeven Point		Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

PUT BACKSPREAD Vs LONG CALL BUTTERFLY - Risk & Reward

	PUT BACKSPREAD	LONG CALL BUTTERFLY
Maximum Profit Scenario		Adjacent strikes - Net premium debit.
Maximum Loss Scenario		Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

PUT BACKSPREAD Vs LONG CALL BUTTERFLY - Strategy Pros & Cons

	PUT BACKSPREAD	LONG CALL BUTTERFLY
Similar Strategies		-
Disadvantage		• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
Advantages		• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.