CALL BACKSPREAD	SHORT 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..	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

CALL BACKSPREAD Vs SHORT PUT - Details

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

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

	CALL BACKSPREAD	SHORT PUT
Market View	Bullish	Bullish
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Sell 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 - Premium

CALL BACKSPREAD Vs SHORT PUT - Risk & Reward

	CALL BACKSPREAD	SHORT PUT
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Unlimited	Limited

CALL BACKSPREAD Vs SHORT PUT - Strategy Pros & Cons

	CALL BACKSPREAD	SHORT PUT
Similar Strategies	-	Bull Put Spread, Short Starddle
Disadvantage		• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	• Unlimited profit potential.	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.