CALL BACKSPREAD	LONG PUT
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..	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

CALL BACKSPREAD Vs LONG PUT - Details

	CALL BACKSPREAD	LONG PUT
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	3	1
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Strike Price of Long Put - Premium Paid

CALL BACKSPREAD Vs LONG PUT - When & How to use ?

	CALL BACKSPREAD	LONG PUT
Market View	Bullish	Bearish
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Buy Put Option
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Strike Price of Long Put - Premium Paid

CALL BACKSPREAD Vs LONG PUT - Risk & Reward

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

CALL BACKSPREAD Vs LONG PUT - Strategy Pros & Cons

	CALL BACKSPREAD	LONG PUT
Similar Strategies	-	Protective Call, Short Put
Disadvantage		• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages	• Unlimited profit potential.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.