SHORT CALL BUTTERFLY	SHORT STRANGLE
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..	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..

SHORT CALL BUTTERFLY Vs SHORT STRANGLE - Details

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

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

	SHORT CALL BUTTERFLY	SHORT STRANGLE
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.	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Sell OTM Call, Sell OTM Put
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

SHORT CALL BUTTERFLY Vs SHORT STRANGLE - Risk & Reward

	SHORT CALL BUTTERFLY	SHORT STRANGLE
Maximum Profit Scenario	The profit is limited to the net premium received.	Maximum Profit = Net Premium Received
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

SHORT CALL BUTTERFLY Vs SHORT STRANGLE - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	SHORT STRANGLE
Similar Strategies	Long Straddle, Long Call Butterfly	Short Straddle, Long Strangle
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
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.	• 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.