SHORT PUT BUTTERFLY	LONG CALL
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..	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 PUT BUTTERFLY Vs LONG CALL - Details

	SHORT PUT BUTTERFLY	LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	4	1
Strategy Level	Advance	Beginner Level
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	Strike Price + Premium

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

	SHORT PUT BUTTERFLY	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?	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 work when an investor expect the underlying instrument move in upward direction.
Action	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put	Buying Call option
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	Strike price + Premium

SHORT PUT BUTTERFLY Vs LONG CALL - Risk & Reward

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

SHORT PUT BUTTERFLY Vs LONG CALL - Strategy Pros & Cons

	SHORT PUT BUTTERFLY	LONG CALL
Similar Strategies	Short Condor, Reverse Iron Condor	Protective Put
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.	• 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	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.