LONG CALL BUTTERFLY	LONG CALL
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..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

LONG CALL BUTTERFLY Vs LONG CALL - Details

	LONG CALL BUTTERFLY	LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	1
Strategy Level	Advance	Beginner Level
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Strike Price + Premium

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

	LONG CALL BUTTERFLY	LONG CALL
Market View	Neutral	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Buying Call option
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Strike price + Premium

LONG CALL BUTTERFLY Vs LONG CALL - Risk & Reward

	LONG CALL BUTTERFLY	LONG CALL
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Net Premium Paid	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

LONG CALL BUTTERFLY Vs LONG CALL - Strategy Pros & Cons

	LONG CALL BUTTERFLY	LONG CALL
Similar Strategies	-	Protective Put
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.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
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.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.