SHORT PUT	CALL BACKSPREAD
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

SHORT PUT Vs CALL BACKSPREAD - Details

	SHORT PUT	CALL BACKSPREAD
Market View	Bullish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price - Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	SHORT PUT	CALL BACKSPREAD
Market View	Bullish	Bullish
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Sell Put Option	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Strike Price - Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

SHORT PUT Vs CALL BACKSPREAD - Risk & Reward

	SHORT PUT	CALL BACKSPREAD
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT PUT Vs CALL BACKSPREAD - Strategy Pros & Cons

	SHORT PUT	CALL BACKSPREAD
Similar Strategies	Bull Put Spread, Short Starddle	-
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.	• Unlimited profit potential.