SHORT CALL LADDER	IRON BUTTERFLY
About Strategy	Short Call Ladder Option Strategy  This strategy is implemented when a trader is moderately bullish on the market, and volatility. It involves sale of an ITM Call Option, buying of an ATM Call Option & OTM Call Option. The risk associated with the strategy is limited. Risk: Read more..	Iron Butterfly Option Strategy  This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements. A trader will buy 1 OTM Put Option, sell 1 ATM Put Option, sell 1 ATM Call Option, buy 1 OTM Call Option. Due to offsetting of long and short positions, this strategy bags limited profit with limited risk. Read more..

SHORT CALL LADDER Vs IRON BUTTERFLY - Details

	SHORT CALL LADDER	IRON BUTTERFLY
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	4
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

SHORT CALL LADDER Vs IRON BUTTERFLY - When & How to use ?

	SHORT CALL LADDER	IRON BUTTERFLY
Market View	Neutral	Neutral
When to use?	This strategy is implemented when a trader is moderately bullish on the market, and volatility	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.
Action	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

SHORT CALL LADDER Vs IRON BUTTERFLY - Risk & Reward

	SHORT CALL LADDER	IRON BUTTERFLY
Maximum Profit Scenario	Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

SHORT CALL LADDER Vs IRON BUTTERFLY - Strategy Pros & Cons

	SHORT CALL LADDER	IRON BUTTERFLY
Similar Strategies	Short Put Ladder, Strip, Strap	Long Put Butterfly, Neutral Calendar Spread
Disadvantage	• Unlimited risk. • Margin required.	• Large commissions involved. • Probability of losses are higher.
Advantages	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.	• Less amount of capital investment, steady income with low risk. • Traders can predict maximum loss and profit. • Versatile strategy, investors can transform position into bear call spread or bull put spread easily.