BEAR PUT SPREAD	LONG CALL BUTTERFLY
About Strategy	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM Read more..	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho .. Read more..

BEAR PUT SPREAD Vs LONG CALL BUTTERFLY - Details

	BEAR PUT SPREAD	LONG CALL BUTTERFLY
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	4
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Net Premium	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

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

	BEAR PUT SPREAD	LONG CALL BUTTERFLY
Market View	Bearish	Neutral
When to use?	The bear call spread options 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.	This strategy should be used when you're expecting no volatility in the price of the underlying.
Action	Buy ITM Put Option, Sell OTM Put Option	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call
Breakeven Point	Strike Price of Long Put - Net Premium	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

BEAR PUT SPREAD Vs LONG CALL BUTTERFLY - Risk & Reward

	BEAR PUT SPREAD	LONG CALL BUTTERFLY
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	Adjacent strikes - Net premium debit.
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Limited

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

	BEAR PUT SPREAD	LONG CALL BUTTERFLY
Similar Strategies	Bear Call Spread, Bull Call Spread	-
Disadvantage	• Limited profit. • Early assignment risk.	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
Advantages	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.