SHORT CALL BUTTERFLY	LONG CALL
About Strategy	Short Call Butterfly Option Strategy This strategy is opposite of the Long Call Butterfly Strategy, a trader expects the market to remain range bound in Long Call Butterfly, but here he expects the market to move beyond strike boundaries in Short Call Butterfly. If the trader is bullish on the market’s volatility, he will implement this strategy. Here also there should be equal distance between the Read more..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

SHORT CALL BUTTERFLY Vs LONG CALL - Details

	SHORT CALL BUTTERFLY	LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	1
Strategy Level	Advance	Beginner Level
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Strike Price + Premium

SHORT CALL BUTTERFLY Vs LONG CALL - When & How to use ?

	SHORT CALL BUTTERFLY	LONG CALL
Market View	Neutral	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
When to use?	This strategy is meant for special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Buying Call option
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Strike price + Premium

SHORT CALL BUTTERFLY Vs LONG CALL - Risk & Reward

	SHORT CALL BUTTERFLY	LONG CALL
Maximum Profit Scenario	The profit is limited to the net premium received.	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

SHORT CALL BUTTERFLY Vs LONG CALL - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	LONG CALL
Similar Strategies	Long Straddle, Long Call Butterfly	Protective Put
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages	• Even if the market is highly volatile, the risk exposure remains limited. • Without any extra investment, you can receive your premium. • Able to book profits even when the price movement cannot be predicted.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.