CALL BACKSPREAD	BULL PUT SPREAD
About Strategy	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..	Bull Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem .. Read more..

CALL BACKSPREAD Vs BULL PUT SPREAD - Details

	CALL BACKSPREAD	BULL PUT SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Strike price of short put - net premium paid

CALL BACKSPREAD Vs BULL PUT SPREAD - When & How to use ?

	CALL BACKSPREAD	BULL PUT SPREAD
Market View	Bullish	Bullish
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Buy OTM Put Option, Sell ITM Put Option
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Strike price of short put - net premium paid

CALL BACKSPREAD Vs BULL PUT SPREAD - Risk & Reward

	CALL BACKSPREAD	BULL PUT SPREAD
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Max Profit = Net Premium Received
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received
Risk	Limited	Limited
Reward	Unlimited	Limited

CALL BACKSPREAD Vs BULL PUT SPREAD - Strategy Pros & Cons

	CALL BACKSPREAD	BULL PUT SPREAD
Similar Strategies	-	Bull Call Spread, Bear Put Spread, Collar
Disadvantage		• Limited profit potential. • In loss situations, time decay may go against you.
Advantages	• Unlimited profit potential.	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.