SHORT GUTS	LONG CALL
About Strategy	Short Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in the positions. < Read more..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

SHORT GUTS Vs LONG CALL - Details

	SHORT GUTS	LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginner Level
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Strike Price + Premium

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

	SHORT GUTS	LONG CALL
Market View	Neutral	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
When to use?	This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Sell 1 ITM Call, Sell 1 ITM Put	Buying Call option
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Strike price + Premium

SHORT GUTS Vs LONG CALL - Risk & Reward

	SHORT GUTS	LONG CALL
Maximum Profit Scenario	Net Premium Received + Strike Price of Short Put - Strike Price of Short Call - Commissions Paid	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Price of Underlying - Strike Price of Short Call - Net Premium Received OR Strike Price of Short Put - Price of Underlying - Net Premium Received + Commissions Paid	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT GUTS Vs LONG CALL - Strategy Pros & Cons

	SHORT GUTS	LONG CALL
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Protective Put
Disadvantage	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages	• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.