SHORT CALL BUTTERFLY	STRAP
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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

SHORT CALL BUTTERFLY Vs STRAP - Details

	SHORT CALL BUTTERFLY	STRAP
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Strike Price of Calls/Puts + (Net Premium Paid/2)

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

	SHORT CALL BUTTERFLY	STRAP
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 used when the investor is bullish on the stock and expects volatility in the near future.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Strike Price of Calls/Puts + (Net Premium Paid/2)

SHORT CALL BUTTERFLY Vs STRAP - Risk & Reward

	SHORT CALL BUTTERFLY	STRAP
Maximum Profit Scenario	The profit is limited to the net premium received.	UNLIMITED
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

SHORT CALL BUTTERFLY Vs STRAP - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	STRAP
Similar Strategies	Long Straddle, Long Call Butterfly	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• To generate profit, there should be significant change in share price. • Expensive strategy.
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.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.