CALL BACKSPREAD	MARRIED PUT
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..	Married Put Option Strategy This strategy is applied when trader goes long on the underlying asset i.e. he buys the stock in cash market. He has a bullish view and expects the market to rise in the near future, but simultaneously has the fear of downward movement of the markets. In order to cover his position from vulnerabilities he buys one ATM Put Option of the same underlying asset. Here, a trader wi .. Read more..

CALL BACKSPREAD Vs MARRIED PUT - Details

	CALL BACKSPREAD	MARRIED PUT
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	3	1
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Purchase Price of Underlying + Premium Paid

CALL BACKSPREAD Vs MARRIED PUT - When & How to use ?

	CALL BACKSPREAD	MARRIED PUT
Market View	Bullish	Bullish
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Purchase Price of Underlying + Premium Paid

CALL BACKSPREAD Vs MARRIED PUT - Risk & Reward

	CALL BACKSPREAD	MARRIED PUT
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

CALL BACKSPREAD Vs MARRIED PUT - Strategy Pros & Cons

	CALL BACKSPREAD	MARRIED PUT
Similar Strategies	-	Long Call
Disadvantage		Cost of the put options eats into profit margin.
Advantages	• Unlimited profit potential.	Unlimited Profit and Limited Risk