PUT BACKSPREAD	LONG STRADDLE
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 Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc .. Read more..

PUT BACKSPREAD Vs LONG STRADDLE - Details

	PUT BACKSPREAD	LONG STRADDLE
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		Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

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

	PUT BACKSPREAD	LONG STRADDLE
Market View	Bearish	Neutral
When to use?		This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action		Buy Call Option, Buy Put Option
Breakeven Point		Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

PUT BACKSPREAD Vs LONG STRADDLE - Risk & Reward

	PUT BACKSPREAD	LONG STRADDLE
Maximum Profit Scenario		Max profit is achieved when at one option is exercised.
Maximum Loss Scenario		Maximum Loss = Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PUT BACKSPREAD Vs LONG STRADDLE - Strategy Pros & Cons

	PUT BACKSPREAD	LONG STRADDLE
Similar Strategies		Bear Put Spread
Disadvantage		• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.
Advantages		• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.