SHORT PUT BUTTERFLY	SHORT PUT
About Strategy	Short Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< Read more..	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

SHORT PUT BUTTERFLY Vs SHORT PUT - Details

	SHORT PUT BUTTERFLY	SHORT PUT
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	4	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Strike Price - Premium

SHORT PUT BUTTERFLY Vs SHORT PUT - When & How to use ?

	SHORT PUT BUTTERFLY	SHORT PUT
Market View	Neutral	Bullish
When to use?	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put	Sell Put Option
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Strike Price - Premium

SHORT PUT BUTTERFLY Vs SHORT PUT - Risk & Reward

	SHORT PUT BUTTERFLY	SHORT PUT
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid	Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Limited	Limited

SHORT PUT BUTTERFLY Vs SHORT PUT - Strategy Pros & Cons

	SHORT PUT BUTTERFLY	SHORT PUT
Similar Strategies	Short Condor, Reverse Iron Condor	Bull Put Spread, Short Starddle
Disadvantage	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.