CALL BACKSPREAD	SHORT STRADDLE
About Strategy	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r 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..

CALL BACKSPREAD Vs SHORT STRADDLE - Details

	CALL BACKSPREAD	SHORT STRADDLE
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

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

	CALL BACKSPREAD	SHORT STRADDLE
Market View	Bullish	Neutral
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	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 1 ITM Call, BUY 2 OTM Call	Sell Call Option, Sell Put Option
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

CALL BACKSPREAD Vs SHORT STRADDLE - Risk & Reward

	CALL BACKSPREAD	SHORT STRADDLE
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

CALL BACKSPREAD Vs SHORT STRADDLE - Strategy Pros & Cons

	CALL 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	• Unlimited profit potential.	• 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 .