PUT BACKSPREAD	SHORT PUT BUTTERFLY
About Strategy	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..	Short Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< .. Read more..

PUT BACKSPREAD Vs SHORT PUT BUTTERFLY - Details

	PUT BACKSPREAD	SHORT PUT BUTTERFLY
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	2	4
Strategy Level	Advance	Advance
Reward Profile		Limited
Risk Profile		Limited
Breakeven Point		Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

PUT BACKSPREAD Vs SHORT PUT BUTTERFLY - When & How to use ?

	PUT BACKSPREAD	SHORT PUT BUTTERFLY
Market View	Bearish	Neutral
When to use?		In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.
Action		Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put
Breakeven Point		Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

PUT BACKSPREAD Vs SHORT PUT BUTTERFLY - Risk & Reward

	PUT BACKSPREAD	SHORT PUT BUTTERFLY
Maximum Profit Scenario		Net Premium Received - Commissions Paid
Maximum Loss Scenario		Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

PUT BACKSPREAD Vs SHORT PUT BUTTERFLY - Strategy Pros & Cons

	PUT BACKSPREAD	SHORT PUT BUTTERFLY
Similar Strategies		Short Condor, Reverse Iron Condor
Disadvantage		• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.
Advantages		• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.