LONG STRADDLE	PUT BACKSPREAD
About Strategy	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc 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..

LONG STRADDLE Vs PUT BACKSPREAD - Details

	LONG STRADDLE	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	Beginners	Advance
Reward Profile	Unlimited
Risk Profile	Limited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

LONG STRADDLE Vs PUT BACKSPREAD - When & How to use ?

	LONG STRADDLE	PUT BACKSPREAD
Market View	Neutral	Bearish
When to use?	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Buy Call Option, Buy Put Option
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

LONG STRADDLE Vs PUT BACKSPREAD - Risk & Reward

	LONG STRADDLE	PUT BACKSPREAD
Maximum Profit Scenario	Max profit is achieved when at one option is exercised.
Maximum Loss Scenario	Maximum Loss = Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG STRADDLE Vs PUT BACKSPREAD - Strategy Pros & Cons

	LONG STRADDLE	PUT BACKSPREAD
Similar Strategies	Bear Put Spread
Disadvantage	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.
Advantages	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.