PUT BACKSPREAD	LONG PUT BUTTERFLY
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 Put Butterfly Option Strategy  The Long Put Butterfly is a neutral strategy where a trader will be bearish on the volatility i.e. he thinks the market will have sideways kind of movement and will not rally sharply in either direction in the near future. This strategy involves sale of 2 ATM Put Options, buy 1 ITM and 1 OTM Put Option. The risk and reward are limited. Read more..

PUT BACKSPREAD Vs LONG PUT BUTTERFLY - Details

	PUT BACKSPREAD	LONG PUT BUTTERFLY
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	2	4
Strategy Level	Advance	Advance
Reward Profile		Limited
Risk Profile		Limited
Breakeven Point		Upper Breakeven Point = Strike Price of Highest Strike Long Put - Net Premium Paid, Lower Breakeven Point = Strike Price of Lowest Strike Long Put + Net Premium Paid

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

	PUT BACKSPREAD	LONG PUT BUTTERFLY
Market View	Bearish	Neutral
When to use?		The Long Put Butterfly is a neutral strategy where a trader will be bearish on the volatility i.e. he thinks the market will have sideways kind of movement and will not rally sharply in either direction in the near future.
Action		Buy 1 OTM Put, Sell 2 ATM Puts, Buy 1 ITM Put
Breakeven Point		Upper Breakeven Point = Strike Price of Highest Strike Long Put - Net Premium Paid, Lower Breakeven Point = Strike Price of Lowest Strike Long Put + Net Premium Paid

PUT BACKSPREAD Vs LONG PUT BUTTERFLY - Risk & Reward

	PUT BACKSPREAD	LONG PUT BUTTERFLY
Maximum Profit Scenario		Strike Price of Higher Strike Long Put - Strike Price of Short Put - Net Premium Paid - Commissions Paid
Maximum Loss Scenario		When Price of Underlying <= Strike Price of Lower Strike Long Put OR Price of Underlying >= Strike Price of Higher Strike Long Put
Risk	Limited	Limited
Reward	Unlimited	Limited

PUT BACKSPREAD Vs LONG PUT BUTTERFLY - Strategy Pros & Cons

	PUT BACKSPREAD	LONG PUT BUTTERFLY
Similar Strategies		Iron Condors, Iron Butterfly
Disadvantage		• Risk is higher than reward. • When the underlying price is in between the two breakeven points, time decay hurts the position.
Advantages		• Limited maximum loss. • Unlimited profit potential, risk only limited to loss of premium. • Benefits from low volatility.