SHORT CALL BUTTERFLY	SHORT PUT
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 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..

SHORT CALL BUTTERFLY Vs SHORT PUT - Details

	SHORT CALL BUTTERFLY	SHORT PUT
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	4	1
Strategy Level	Advance	Beginners
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	Strike Price - Premium

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

	SHORT CALL BUTTERFLY	SHORT PUT
Market View	Neutral	Bullish
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 works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Sell Put Option
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Strike Price - Premium

SHORT CALL BUTTERFLY Vs SHORT PUT - Risk & Reward

	SHORT CALL BUTTERFLY	SHORT PUT
Maximum Profit Scenario	The profit is limited to the net premium received.	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Limited	Limited

SHORT CALL BUTTERFLY Vs SHORT PUT - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	SHORT PUT
Similar Strategies	Long Straddle, Long Call Butterfly	Bull Put Spread, Short Starddle
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
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.	• 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.