LONG CALL BUTTERFLY	CALL BACKSPREAD
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..	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..

LONG CALL BUTTERFLY Vs CALL BACKSPREAD - Details

	LONG CALL BUTTERFLY	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	LONG CALL BUTTERFLY	CALL BACKSPREAD
Market View	Neutral	Bullish
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 the investor expects the price of the stock to rise in the future.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

LONG CALL BUTTERFLY Vs CALL BACKSPREAD - Risk & Reward

	LONG CALL BUTTERFLY	CALL BACKSPREAD
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Net Premium Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Limited	Unlimited

LONG CALL BUTTERFLY Vs CALL BACKSPREAD - Strategy Pros & Cons

	LONG CALL BUTTERFLY	CALL BACKSPREAD
Similar Strategies	-	-
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.
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.	• Unlimited profit potential.