SHORT CALL	CALL BACKSPREAD
About Strategy	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy Read more..	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..

SHORT CALL Vs CALL BACKSPREAD - Details

	SHORT CALL	CALL BACKSPREAD
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price of Short Call + Premium Received	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

SHORT CALL Vs CALL BACKSPREAD - When & How to use ?

	SHORT CALL	CALL BACKSPREAD
Market View	Bearish	Bullish
When to use?	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Sell or Write Call Option	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Strike Price of Short Call + Premium Received	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

SHORT CALL Vs CALL BACKSPREAD - Risk & Reward

	SHORT CALL	CALL BACKSPREAD
Maximum Profit Scenario	Max Profit = Premium Received	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT CALL Vs CALL BACKSPREAD - Strategy Pros & Cons

	SHORT CALL	CALL BACKSPREAD
Similar Strategies	Covered Put, Covered Calls	-
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.	• Unlimited profit potential.