SHORT CALL BUTTERFLY	SHORT CALL
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..	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

SHORT CALL BUTTERFLY Vs SHORT CALL - Details

	SHORT CALL BUTTERFLY	SHORT CALL
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	1
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Strike Price of Short Call + Premium Received

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

	SHORT CALL BUTTERFLY	SHORT CALL
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.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Sell or Write Call Option
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Strike Price of Short Call + Premium Received

SHORT CALL BUTTERFLY Vs SHORT CALL - Risk & Reward

	SHORT CALL BUTTERFLY	SHORT CALL
Maximum Profit Scenario	The profit is limited to the net premium received.	Max Profit = Premium Received
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

SHORT CALL BUTTERFLY Vs SHORT CALL - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	SHORT CALL
Similar Strategies	Long Straddle, Long Call Butterfly	Covered Put, Covered Calls
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
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.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.