LONG STRADDLE	CALL BACKSPREAD
About Strategy	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc 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..

LONG STRADDLE Vs CALL BACKSPREAD - Details

	LONG STRADDLE	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

LONG STRADDLE Vs CALL BACKSPREAD - When & How to use ?

	LONG STRADDLE	CALL BACKSPREAD
Market View	Neutral	Bullish
When to use?	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Buy Call Option, Buy Put Option	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

LONG STRADDLE Vs CALL BACKSPREAD - Risk & Reward

	LONG STRADDLE	CALL BACKSPREAD
Maximum Profit Scenario	Max profit is achieved when at one option is exercised.	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Maximum Loss = Net Premium Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG STRADDLE Vs CALL BACKSPREAD - Strategy Pros & Cons

	LONG STRADDLE	CALL BACKSPREAD
Similar Strategies	Bear Put Spread	-
Disadvantage	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.
Advantages	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.	• Unlimited profit potential.