SHORT STRANGLE	CALL BACKSPREAD
About Strategy	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if 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 STRANGLE Vs CALL BACKSPREAD - Details

	SHORT STRANGLE	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	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = 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

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

	SHORT STRANGLE	CALL BACKSPREAD
Market View	Neutral	Bullish
When to use?	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Sell OTM Call, Sell OTM Put	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = 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

SHORT STRANGLE Vs CALL BACKSPREAD - Risk & Reward

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

SHORT STRANGLE Vs CALL BACKSPREAD - Strategy Pros & Cons

	SHORT STRANGLE	CALL BACKSPREAD
Similar Strategies	Short Straddle, Long Strangle	-
Disadvantage	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
Advantages	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.	• Unlimited profit potential.