PUT BACKSPREAD	SHORT STRADDLE
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 Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an .. Read more..

PUT BACKSPREAD Vs SHORT STRADDLE - Details

	PUT BACKSPREAD	SHORT STRADDLE
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile		Limited
Risk Profile		Unlimited
Breakeven Point		Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

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

	PUT BACKSPREAD	SHORT STRADDLE
Market View	Bearish	Neutral
When to use?		This strategy is work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.
Action		Sell Call Option, Sell Put Option
Breakeven Point		Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

PUT BACKSPREAD Vs SHORT STRADDLE - Risk & Reward

	PUT BACKSPREAD	SHORT STRADDLE
Maximum Profit Scenario		Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario		Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

PUT BACKSPREAD Vs SHORT STRADDLE - Strategy Pros & Cons

	PUT BACKSPREAD	SHORT STRADDLE
Similar Strategies		Short Strangle
Disadvantage		• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.
Advantages		• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .