LONG CALL BUTTERFLY	BULL PUT SPREAD
About Strategy	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..	Bull Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem .. Read more..

LONG CALL BUTTERFLY Vs BULL PUT SPREAD - Details

	LONG CALL BUTTERFLY	BULL PUT SPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Strike price of short put - net premium paid

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

	LONG CALL BUTTERFLY	BULL PUT SPREAD
Market View	Neutral	Bullish
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Buy OTM Put Option, Sell ITM Put Option
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Strike price of short put - net premium paid

LONG CALL BUTTERFLY Vs BULL PUT SPREAD - Risk & Reward

	LONG CALL BUTTERFLY	BULL PUT SPREAD
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Max Profit = Net Premium Received
Maximum Loss Scenario	Net Premium Paid	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

LONG CALL BUTTERFLY Vs BULL PUT SPREAD - Strategy Pros & Cons

	LONG CALL BUTTERFLY	BULL PUT SPREAD
Similar Strategies	-	Bull Call Spread, Bear Put Spread, Collar
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.	• Limited profit potential. • In loss situations, time decay may go against you.
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.	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.