CALL BACKSPREAD	SHORT CALL
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..	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..

CALL BACKSPREAD Vs SHORT CALL - Details

	CALL BACKSPREAD	SHORT CALL
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	3	1
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
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 Call + Premium Received

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

	CALL BACKSPREAD	SHORT CALL
Market View	Bullish	Bearish
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	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	Sell 1 ITM Call, BUY 2 OTM Call	Sell or Write Call 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 Call + Premium Received

CALL BACKSPREAD Vs SHORT CALL - Risk & Reward

	CALL BACKSPREAD	SHORT CALL
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Max Profit = Premium Received
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

CALL BACKSPREAD Vs SHORT CALL - Strategy Pros & Cons

	CALL BACKSPREAD	SHORT CALL
Similar Strategies	-	Covered Put, Covered Calls
Disadvantage		• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	• Unlimited profit potential.	• 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.