CALL BACKSPREAD	LONG CALL BUTTERFLY
About Strategy	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 Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho .. Read more..

CALL BACKSPREAD Vs LONG CALL BUTTERFLY - Details

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

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

	CALL BACKSPREAD	LONG CALL BUTTERFLY
Market View	Bullish	Neutral
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	This strategy should be used when you're expecting no volatility in the price of the underlying.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

CALL BACKSPREAD Vs LONG CALL BUTTERFLY - Risk & Reward

	CALL BACKSPREAD	LONG CALL BUTTERFLY
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Adjacent strikes - Net premium debit.
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

CALL BACKSPREAD Vs LONG CALL BUTTERFLY - Strategy Pros & Cons

	CALL BACKSPREAD	LONG CALL BUTTERFLY
Similar Strategies	-	-
Disadvantage		• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
Advantages	• Unlimited profit potential.	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.