BEAR CALL SPREAD	SHORT PUT BUTTERFLY
About Strategy	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r Read more..	Short Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< .. Read more..

BEAR CALL SPREAD Vs SHORT PUT BUTTERFLY - Details

	BEAR CALL SPREAD	SHORT PUT BUTTERFLY
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Short Call + Net Premium Received	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

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

	BEAR CALL SPREAD	SHORT PUT BUTTERFLY
Market View	Bearish	Neutral
When to use?	This strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.
Action	Buy OTM Call Option, Sell ITM Call Option	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put
Breakeven Point	Strike Price of Short Call + Net Premium Received	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

BEAR CALL SPREAD Vs SHORT PUT BUTTERFLY - Risk & Reward

	BEAR CALL SPREAD	SHORT PUT BUTTERFLY
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

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

	BEAR CALL SPREAD	SHORT PUT BUTTERFLY
Similar Strategies	Bear Put Spread, Bull Call Spread	Short Condor, Reverse Iron Condor
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.
Advantages	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.