SHORT CALL	PUT BACKSPREAD
About Strategy	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..	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 CALL Vs PUT BACKSPREAD - Details

	SHORT CALL	PUT BACKSPREAD
Market View	Bearish	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	1	2
Strategy Level	Advance	Advance
Reward Profile	Limited
Risk Profile	Unlimited
Breakeven Point	Strike Price of Short Call + Premium Received

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

	SHORT CALL	PUT BACKSPREAD
Market View	Bearish	Bearish
When to use?	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 or Write Call Option
Breakeven Point	Strike Price of Short Call + Premium Received

SHORT CALL Vs PUT BACKSPREAD - Risk & Reward

	SHORT CALL	PUT BACKSPREAD
Maximum Profit Scenario	Max Profit = Premium Received
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT CALL Vs PUT BACKSPREAD - Strategy Pros & Cons

	SHORT CALL	PUT BACKSPREAD
Similar Strategies	Covered Put, Covered Calls
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	• 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.