PUT BACKSPREAD	LONG GUTS
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..	Long Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude. This strategy involves buying 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Debit Spread because trader’s account is debited at the time of entering the positions.< .. Read more..

PUT BACKSPREAD Vs LONG GUTS - Details

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

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

	PUT BACKSPREAD	LONG GUTS
Market View	Bearish	Neutral
When to use?		This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude.
Action		Buy 1 ITM Call, Buy 1 ITM Put
Breakeven Point		Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

PUT BACKSPREAD Vs LONG GUTS - Risk & Reward

	PUT BACKSPREAD	LONG GUTS
Maximum Profit Scenario		Price of Underlying - Strike Price of Long Call - Net Premium Paid OR Strike Price of Long Put - Price of Underlying - Premium Paid
Maximum Loss Scenario		Net Premium Paid + Strike Price of Long Put - Strike Price of Long Call + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PUT BACKSPREAD Vs LONG GUTS - Strategy Pros & Cons

	PUT BACKSPREAD	LONG GUTS
Similar Strategies		Short Put Ladder, Strip, Strap
Disadvantage		• More commission involved than simply buying call or put option. • Expensive.
Advantages		• Investors can get unlimited profit if the underlying asset goes up or down. • Ability to profit no matter if the market goes in either direction. • Limited loss.