LONG CALL BUTTERFLY	SHORT 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..	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

LONG CALL BUTTERFLY Vs SHORT CALL - Details

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

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

	LONG CALL BUTTERFLY	SHORT CALL
Market View	Neutral	Bearish
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Sell or Write Call Option
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Strike Price of Short Call + Premium Received

LONG CALL BUTTERFLY Vs SHORT CALL - Risk & Reward

	LONG CALL BUTTERFLY	SHORT CALL
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Max Profit = Premium Received
Maximum Loss Scenario	Net Premium Paid	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

LONG CALL BUTTERFLY Vs SHORT CALL - Strategy Pros & Cons

	LONG CALL BUTTERFLY	SHORT CALL
Similar Strategies	-	Covered Put, Covered Calls
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.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
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.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.