SHORT CALL BUTTERFLY	BEAR PUT SPREAD
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..	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM .. Read more..

SHORT CALL BUTTERFLY Vs BEAR PUT SPREAD - Details

	SHORT CALL BUTTERFLY	BEAR PUT SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	4	2
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	Strike Price of Long Put - Net Premium

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

	SHORT CALL BUTTERFLY	BEAR PUT SPREAD
Market View	Neutral	Bearish
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.	The bear call spread options strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Buy ITM Put Option, Sell OTM Put Option
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Strike Price of Long Put - Net Premium

SHORT CALL BUTTERFLY Vs BEAR PUT SPREAD - Risk & Reward

	SHORT CALL BUTTERFLY	BEAR PUT SPREAD
Maximum Profit Scenario	The profit is limited to the net premium received.	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Max Loss = Net Premium Paid.
Risk	Limited	Limited
Reward	Limited	Limited

SHORT CALL BUTTERFLY Vs BEAR PUT SPREAD - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	BEAR PUT SPREAD
Similar Strategies	Long Straddle, Long Call Butterfly	Bear Call Spread, Bull Call Spread
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• Limited profit. • Early assignment risk.
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.	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.