SHORT GUTS	CALL BACKSPREAD
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..	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 GUTS Vs CALL BACKSPREAD - Details

	SHORT GUTS	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Beginners	Advance
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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	SHORT GUTS	CALL BACKSPREAD
Market View	Neutral	Bullish
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 is used when the investor expects the price of the stock to rise in the future.
Action	Sell 1 ITM Call, Sell 1 ITM Put	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of 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 GUTS Vs CALL BACKSPREAD - Risk & Reward

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

SHORT GUTS Vs CALL BACKSPREAD - Strategy Pros & Cons

	SHORT GUTS	CALL BACKSPREAD
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	-
Disadvantage	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.
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.	• Unlimited profit potential.