SHORT CALL BUTTERFLY	STRIP
About Strategy	Short Call Butterfly Option Strategy This strategy is opposite of the Long Call Butterfly Strategy, a trader expects the market to remain range bound in Long Call Butterfly, but here he expects the market to move beyond strike boundaries in Short Call Butterfly. If the trader is bullish on the market’s volatility, he will implement this strategy. Here also there should be equal distance between the Read more..	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the .. Read more..

SHORT CALL BUTTERFLY Vs STRIP - Details

	SHORT CALL BUTTERFLY	STRIP
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

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

	SHORT CALL BUTTERFLY	STRIP
Market View	Neutral	Neutral
When to use?	This strategy is meant for special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Buy 1 ATM Call, Buy 2 ATM Puts
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

SHORT CALL BUTTERFLY Vs STRIP - Risk & Reward

	SHORT CALL BUTTERFLY	STRIP
Maximum Profit Scenario	The profit is limited to the net premium received.	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Net Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

SHORT CALL BUTTERFLY Vs STRIP - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	STRIP
Similar Strategies	Long Straddle, Long Call Butterfly	Strap, Short Put Ladder
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
Advantages	• Even if the market is highly volatile, the risk exposure remains limited. • Without any extra investment, you can receive your premium. • Able to book profits even when the price movement cannot be predicted.	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.