SHORT CALL BUTTERFLY	SHORT PUT BUTTERFLY
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 Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< .. Read more..

SHORT CALL BUTTERFLY Vs SHORT PUT BUTTERFLY - Details

	SHORT CALL BUTTERFLY	SHORT PUT BUTTERFLY
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	4	4
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
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 Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

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

	SHORT CALL BUTTERFLY	SHORT PUT BUTTERFLY
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.	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

SHORT CALL BUTTERFLY Vs SHORT PUT BUTTERFLY - Risk & Reward

	SHORT CALL BUTTERFLY	SHORT PUT BUTTERFLY
Maximum Profit Scenario	The profit is limited to the net premium received.	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

SHORT CALL BUTTERFLY Vs SHORT PUT BUTTERFLY - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	SHORT PUT BUTTERFLY
Similar Strategies	Long Straddle, Long Call Butterfly	Short Condor, Reverse Iron Condor
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.
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.	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.