LONG CALL BUTTERFLY	SHORT 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..	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

LONG CALL BUTTERFLY Vs SHORT PUT - Details

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

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

	LONG CALL BUTTERFLY	SHORT PUT
Market View	Neutral	Bullish
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Sell Put Option
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Strike Price - Premium

LONG CALL BUTTERFLY Vs SHORT PUT - Risk & Reward

	LONG CALL BUTTERFLY	SHORT PUT
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Net Premium Paid	Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Limited	Limited

LONG CALL BUTTERFLY Vs SHORT PUT - Strategy Pros & Cons

	LONG CALL BUTTERFLY	SHORT PUT
Similar Strategies	-	Bull Put Spread, Short Starddle
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. • Huge losses if the price of the underlying stock falls steeply.
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 time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.