SHORT PUT BUTTERFLY	BEAR CALL SPREAD
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..	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r .. Read more..

SHORT PUT BUTTERFLY Vs BEAR CALL SPREAD - Details

	SHORT PUT BUTTERFLY	BEAR CALL SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	4	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
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 of Short Call + Net Premium Received

SHORT PUT BUTTERFLY Vs BEAR CALL SPREAD - When & How to use ?

	SHORT PUT BUTTERFLY	BEAR CALL SPREAD
Market View	Neutral	Bearish
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 is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put	Buy OTM Call Option, Sell ITM Call 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 of Short Call + Net Premium Received

SHORT PUT BUTTERFLY Vs BEAR CALL SPREAD - Risk & Reward

	SHORT PUT BUTTERFLY	BEAR CALL SPREAD
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

SHORT PUT BUTTERFLY Vs BEAR CALL SPREAD - Strategy Pros & Cons

	SHORT PUT BUTTERFLY	BEAR CALL SPREAD
Similar Strategies	Short Condor, Reverse Iron Condor	Bear Put Spread, Bull Call Spread
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.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.