SHORT CALL BUTTERFLY	LONG PUT
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 Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

SHORT CALL BUTTERFLY Vs LONG PUT - Details

	SHORT CALL BUTTERFLY	LONG PUT
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	4	1
Strategy Level	Advance	Beginners
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 of Long Put - Premium Paid

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

	SHORT CALL BUTTERFLY	LONG PUT
Market View	Neutral	Bearish
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.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Buy Put Option
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Strike Price of Long Put - Premium Paid

SHORT CALL BUTTERFLY Vs LONG PUT - Risk & Reward

	SHORT CALL BUTTERFLY	LONG PUT
Maximum Profit Scenario	The profit is limited to the net premium received.	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

SHORT CALL BUTTERFLY Vs LONG PUT - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	LONG PUT
Similar Strategies	Long Straddle, Long Call Butterfly	Protective Call, Short Put
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
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.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.