LONG CALL BUTTERFLY	LONG PUT
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 Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

LONG CALL BUTTERFLY Vs LONG PUT - Details

	LONG CALL BUTTERFLY	LONG PUT
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	4	1
Strategy Level	Advance	Beginners
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 of Long Put - Premium Paid

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

	LONG CALL BUTTERFLY	LONG PUT
Market View	Neutral	Bearish
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Buy Put Option
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Strike Price of Long Put - Premium Paid

LONG CALL BUTTERFLY Vs LONG PUT - Risk & Reward

	LONG CALL BUTTERFLY	LONG PUT
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Net Premium Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

LONG CALL BUTTERFLY Vs LONG PUT - Strategy Pros & Cons

	LONG CALL BUTTERFLY	LONG PUT
Similar Strategies	-	Protective Call, Short 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.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
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.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.