SHORT CALL BUTTERFLY	CALL BACKSPREAD
About Strategy	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..	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 BUTTERFLY Vs CALL BACKSPREAD - Details

	SHORT CALL BUTTERFLY	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	SHORT CALL BUTTERFLY	CALL BACKSPREAD
Market View	Neutral	Bullish
When to use?	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.	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

SHORT CALL BUTTERFLY Vs CALL BACKSPREAD - Risk & Reward

	SHORT CALL BUTTERFLY	CALL BACKSPREAD
Maximum Profit Scenario	The profit is limited to the net premium received.	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Limited	Unlimited

SHORT CALL BUTTERFLY Vs CALL BACKSPREAD - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	CALL BACKSPREAD
Similar Strategies	Long Straddle, Long Call Butterfly	-
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.
Advantages	• 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.	• Unlimited profit potential.