BULL PUT SPREAD	SHORT CALL BUTTERFLY
About Strategy	Bull Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem Read more..	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..

BULL PUT SPREAD Vs SHORT CALL BUTTERFLY - Details

	BULL PUT SPREAD	SHORT CALL BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	4
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike price of short put - net premium paid	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium

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

	BULL PUT SPREAD	SHORT CALL BUTTERFLY
Market View	Bullish	Neutral
When to use?	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.	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.
Action	Buy OTM Put Option, Sell ITM Put Option	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call
Breakeven Point	Strike price of short put - net premium paid	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium

BULL PUT SPREAD Vs SHORT CALL BUTTERFLY - Risk & Reward

	BULL PUT SPREAD	SHORT CALL BUTTERFLY
Maximum Profit Scenario	Max Profit = Net Premium Received	The profit is limited to the net premium received.
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Higher strike price- Lower Strike Price - Net Premium
Risk	Limited	Limited
Reward	Limited	Limited

BULL PUT SPREAD Vs SHORT CALL BUTTERFLY - Strategy Pros & Cons

	BULL PUT SPREAD	SHORT CALL BUTTERFLY
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Long Straddle, Long Call Butterfly
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.
Advantages	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.	• 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.