STRIP	CALL BACKSPREAD
About Strategy	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the Read more..	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..

STRIP Vs CALL BACKSPREAD - Details

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

STRIP Vs CALL BACKSPREAD - When & How to use ?

	STRIP	CALL BACKSPREAD
Market View	Neutral	Bullish
When to use?	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Buy 1 ATM Call, Buy 2 ATM Puts	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

STRIP Vs CALL BACKSPREAD - Risk & Reward

	STRIP	CALL BACKSPREAD
Maximum Profit Scenario	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Unlimited	Unlimited

STRIP Vs CALL BACKSPREAD - Strategy Pros & Cons

	STRIP	CALL BACKSPREAD
Similar Strategies	Strap, Short Put Ladder	-
Disadvantage	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
Advantages	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.	• Unlimited profit potential.