PUT BACKSPREAD	SHORT STRANGLE
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 Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

PUT BACKSPREAD Vs SHORT STRANGLE - Details

	PUT BACKSPREAD	SHORT STRANGLE
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 Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

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

	PUT BACKSPREAD	SHORT STRANGLE
Market View	Bearish	Neutral
When to use?		This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action		Sell OTM Call, Sell OTM Put
Breakeven Point		Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

PUT BACKSPREAD Vs SHORT STRANGLE - Risk & Reward

	PUT BACKSPREAD	SHORT STRANGLE
Maximum Profit Scenario		Maximum Profit = Net Premium Received
Maximum Loss Scenario		Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

PUT BACKSPREAD Vs SHORT STRANGLE - Strategy Pros & Cons

	PUT BACKSPREAD	SHORT STRANGLE
Similar Strategies		Short Straddle, Long Strangle
Disadvantage		• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
Advantages		• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.