SHORT PUT BUTTERFLY	CALL BACKSPREAD
About Strategy	Short Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< 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 BUTTERFLY Vs CALL BACKSPREAD - Details

	SHORT PUT BUTTERFLY	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	4	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	SHORT PUT BUTTERFLY	CALL BACKSPREAD
Market View	Neutral	Bullish
When to use?	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

SHORT PUT BUTTERFLY Vs CALL BACKSPREAD - Risk & Reward

	SHORT PUT BUTTERFLY	CALL BACKSPREAD
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Limited	Unlimited

SHORT PUT BUTTERFLY Vs CALL BACKSPREAD - Strategy Pros & Cons

	SHORT PUT BUTTERFLY	CALL BACKSPREAD
Similar Strategies	Short Condor, Reverse Iron Condor	-
Disadvantage	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.
Advantages	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.	• Unlimited profit potential.