SHORT CALL BUTTERFLY	LONG COMBO
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 Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received .. Read more..

SHORT CALL BUTTERFLY Vs LONG COMBO - Details

	SHORT CALL BUTTERFLY	LONG COMBO
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Call Strike + Net Premium

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

	SHORT CALL BUTTERFLY	LONG COMBO
Market View	Neutral	Bullish
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 is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Call Strike + Net Premium

SHORT CALL BUTTERFLY Vs LONG COMBO - Risk & Reward

	SHORT CALL BUTTERFLY	LONG COMBO
Maximum Profit Scenario	The profit is limited to the net premium received.	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Underlying asset goes down and Put option exercised
Risk	Limited	Unlimited
Reward	Limited	Unlimited

SHORT CALL BUTTERFLY Vs LONG COMBO - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	LONG COMBO
Similar Strategies	Long Straddle, Long Call Butterfly	-
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
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.	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.