SHORT PUT BUTTERFLY	PUT BACKSPREAD
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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

SHORT PUT BUTTERFLY Vs PUT BACKSPREAD - Details

	SHORT PUT BUTTERFLY	PUT BACKSPREAD
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Advance
Reward Profile	Limited
Risk Profile	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

SHORT PUT BUTTERFLY Vs PUT BACKSPREAD - When & How to use ?

	SHORT PUT BUTTERFLY	PUT BACKSPREAD
Market View	Neutral	Bearish
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.
Action	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put
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

SHORT PUT BUTTERFLY Vs PUT BACKSPREAD - Risk & Reward

	SHORT PUT BUTTERFLY	PUT BACKSPREAD
Maximum Profit Scenario	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

SHORT PUT BUTTERFLY Vs PUT BACKSPREAD - Strategy Pros & Cons

	SHORT PUT BUTTERFLY	PUT BACKSPREAD
Similar Strategies	Short Condor, Reverse Iron Condor
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.
Advantages	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.