CALL BACKSPREAD	LONG STRADDLE
About Strategy	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..	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc .. Read more..

CALL BACKSPREAD Vs LONG STRADDLE - Details

	CALL BACKSPREAD	LONG STRADDLE
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

CALL BACKSPREAD Vs LONG STRADDLE - When & How to use ?

	CALL BACKSPREAD	LONG STRADDLE
Market View	Bullish	Neutral
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Buy Call Option, Buy Put Option
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

CALL BACKSPREAD Vs LONG STRADDLE - Risk & Reward

	CALL BACKSPREAD	LONG STRADDLE
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Max profit is achieved when at one option is exercised.
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Maximum Loss = Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

CALL BACKSPREAD Vs LONG STRADDLE - Strategy Pros & Cons

	CALL BACKSPREAD	LONG STRADDLE
Similar Strategies	-	Bear Put Spread
Disadvantage		• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.
Advantages	• Unlimited profit potential.	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.