SHORT STRADDLE	PUT BACKSPREAD
About Strategy	Short Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an Read more..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

SHORT STRADDLE Vs PUT BACKSPREAD - Details

	SHORT STRADDLE	PUT BACKSPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Limited
Risk Profile	Unlimited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

SHORT STRADDLE Vs PUT BACKSPREAD - When & How to use ?

	SHORT STRADDLE	PUT BACKSPREAD
Market View	Neutral	Bearish
When to use?	This strategy is work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.
Action	Sell Call Option, Sell Put Option
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

SHORT STRADDLE Vs PUT BACKSPREAD - Risk & Reward

	SHORT STRADDLE	PUT BACKSPREAD
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT STRADDLE Vs PUT BACKSPREAD - Strategy Pros & Cons

	SHORT STRADDLE	PUT BACKSPREAD
Similar Strategies	Short Strangle
Disadvantage	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.
Advantages	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .