SHORT PUT BUTTERFLY	SHORT CALL
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 Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

SHORT PUT BUTTERFLY Vs SHORT CALL - Details

	SHORT PUT BUTTERFLY	SHORT CALL
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	4	1
Strategy Level	Advance	Advance
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 of Short Call + Premium Received

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

	SHORT PUT BUTTERFLY	SHORT CALL
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.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put	Sell or Write 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 + Premium Received

SHORT PUT BUTTERFLY Vs SHORT CALL - Risk & Reward

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

SHORT PUT BUTTERFLY Vs SHORT CALL - Strategy Pros & Cons

	SHORT PUT BUTTERFLY	SHORT CALL
Similar Strategies	Short Condor, Reverse Iron Condor	Covered Put, Covered Calls
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 to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.