SHORT CALL BUTTERFLY	LONG CALL 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..	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho .. Read more..

SHORT CALL BUTTERFLY Vs LONG CALL BUTTERFLY - Details

	SHORT CALL BUTTERFLY	LONG CALL BUTTERFLY
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call 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 = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

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

	SHORT CALL BUTTERFLY	LONG CALL 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.	This strategy should be used when you're expecting no volatility in the price of the underlying.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

SHORT CALL BUTTERFLY Vs LONG CALL BUTTERFLY - Risk & Reward

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

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

	SHORT CALL BUTTERFLY	LONG CALL BUTTERFLY
Similar Strategies	Long Straddle, Long Call Butterfly	-
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
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.	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.