BULL PUT SPREAD	LONG CALL BUTTERFLY
About Strategy	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..	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho .. Read more..

BULL PUT SPREAD Vs LONG CALL BUTTERFLY - Details

	BULL PUT SPREAD	LONG CALL BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	4
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

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

	BULL PUT SPREAD	LONG CALL BUTTERFLY
Market View	Bullish	Neutral
When to use?	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.	This strategy should be used when you're expecting no volatility in the price of the underlying.
Action	Buy OTM Put Option, Sell ITM Put Option	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

BULL PUT SPREAD Vs LONG CALL BUTTERFLY - Risk & Reward

	BULL PUT SPREAD	LONG CALL BUTTERFLY
Maximum Profit Scenario	Max Profit = Net Premium Received	Adjacent strikes - Net premium debit.
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Limited

BULL PUT SPREAD Vs LONG CALL BUTTERFLY - Strategy Pros & Cons

	BULL PUT SPREAD	LONG CALL BUTTERFLY
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	-
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
Advantages	• 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.	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.