CALL BACKSPREAD	STRIP
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..	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the .. Read more..

CALL BACKSPREAD Vs STRIP - Details

	CALL BACKSPREAD	STRIP
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	3
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

CALL BACKSPREAD Vs STRIP - When & How to use ?

	CALL BACKSPREAD	STRIP
Market View	Bullish	Neutral
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Buy 1 ATM Call, Buy 2 ATM Puts
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

CALL BACKSPREAD Vs STRIP - Risk & Reward

	CALL BACKSPREAD	STRIP
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Net Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

CALL BACKSPREAD Vs STRIP - Strategy Pros & Cons

	CALL BACKSPREAD	STRIP
Similar Strategies	-	Strap, Short Put Ladder
Disadvantage		Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
Advantages	• Unlimited profit potential.	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.