LONG CALL BUTTERFLY	BEAR CALL SPREAD
About Strategy	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho Read more..	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r .. Read more..

LONG CALL BUTTERFLY Vs BEAR CALL SPREAD - Details

	LONG CALL BUTTERFLY	BEAR CALL SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Strike Price of Short Call + Net Premium Received

LONG CALL BUTTERFLY Vs BEAR CALL SPREAD - When & How to use ?

	LONG CALL BUTTERFLY	BEAR CALL SPREAD
Market View	Neutral	Bearish
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.	This strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Strike Price of Short Call + Net Premium Received

LONG CALL BUTTERFLY Vs BEAR CALL SPREAD - Risk & Reward

	LONG CALL BUTTERFLY	BEAR CALL SPREAD
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Net Premium Paid	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

LONG CALL BUTTERFLY Vs BEAR CALL SPREAD - Strategy Pros & Cons

	LONG CALL BUTTERFLY	BEAR CALL SPREAD
Similar Strategies	-	Bear Put Spread, Bull Call Spread
Disadvantage	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.