LONG CALL BUTTERFLY	SHORT STRANGLE
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..	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

LONG CALL BUTTERFLY Vs SHORT STRANGLE - Details

	LONG CALL BUTTERFLY	SHORT STRANGLE
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

LONG CALL BUTTERFLY Vs SHORT STRANGLE - When & How to use ?

	LONG CALL BUTTERFLY	SHORT STRANGLE
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 strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Sell OTM Call, Sell OTM Put
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

LONG CALL BUTTERFLY Vs SHORT STRANGLE - Risk & Reward

	LONG CALL BUTTERFLY	SHORT STRANGLE
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Maximum Profit = Net Premium Received
Maximum Loss Scenario	Net Premium Paid	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

LONG CALL BUTTERFLY Vs SHORT STRANGLE - Strategy Pros & Cons

	LONG CALL BUTTERFLY	SHORT STRANGLE
Similar Strategies	-	Short Straddle, Long Strangle
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.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
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.	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.