SHORT STRANGLE	PUT BACKSPREAD
About Strategy	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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

SHORT STRANGLE Vs PUT BACKSPREAD - Details

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

SHORT STRANGLE Vs PUT BACKSPREAD - When & How to use ?

	SHORT STRANGLE	PUT BACKSPREAD
Market View	Neutral	Bearish
When to use?	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Sell OTM Call, Sell OTM Put
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

SHORT STRANGLE Vs PUT BACKSPREAD - Risk & Reward

	SHORT STRANGLE	PUT BACKSPREAD
Maximum Profit Scenario	Maximum Profit = Net Premium Received
Maximum Loss Scenario	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT STRANGLE Vs PUT BACKSPREAD - Strategy Pros & Cons

	SHORT STRANGLE	PUT BACKSPREAD
Similar Strategies	Short Straddle, Long Strangle
Disadvantage	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
Advantages	• 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.