LONG CALL BUTTERFLY	LONG STRADDLE
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..	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..

LONG CALL BUTTERFLY Vs LONG STRADDLE - Details

	LONG CALL BUTTERFLY	LONG STRADDLE
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Beginners
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 Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

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

	LONG CALL BUTTERFLY	LONG STRADDLE
Market View	Neutral	Neutral
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.	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	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Buy Call Option, Buy Put Option
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

LONG CALL BUTTERFLY Vs LONG STRADDLE - Risk & Reward

	LONG CALL BUTTERFLY	LONG STRADDLE
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Max profit is achieved when at one option is exercised.
Maximum Loss Scenario	Net Premium Paid	Maximum Loss = Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

LONG CALL BUTTERFLY Vs LONG STRADDLE - Strategy Pros & Cons

	LONG CALL BUTTERFLY	LONG STRADDLE
Similar Strategies	-	Bear Put 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.	• 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	• 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 potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.