THE COLLAR	IRON CONDORS
About Strategy	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op Read more..	Iron Condors Option Strategy Iron Condor is a neutral trading strategy. A trader tries to make profit from low volatility in the price of the underlying asset. This strategy will be better understood if you recall ‘Bull Put Spread’ & ‘Bear Call Spread’. A trader will buy one Deep OTM Put Option and sell one OTM Put Option,. He will also sell one OTM Call Option and buy one Deep OTM Call Option. .. Read more..

THE COLLAR Vs IRON CONDORS - Details

	THE COLLAR	IRON CONDORS
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option) + Underlying	CE (Call Option) + PE (Put Option)
Number Of Positions	3	4
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Price of Features - Call Premium + Put Premium	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

THE COLLAR Vs IRON CONDORS - When & How to use ?

	THE COLLAR	IRON CONDORS
Market View	Bullish	Neutral
When to use?	It should be used only in case where trader is certain about the bearish market view.	When a trader tries to make profit from low volatility in the price of the underlying asset.
Action	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option	Sell 1 OTM Put, Buy 1 OTM Put (Lower Strike), Sell 1 OTM Call, Buy 1 OTM Call (Higher Strike)
Breakeven Point	Price of Features - Call Premium + Put Premium	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

THE COLLAR Vs IRON CONDORS - Risk & Reward

	THE COLLAR	IRON CONDORS
Maximum Profit Scenario	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

THE COLLAR Vs IRON CONDORS - Strategy Pros & Cons

	THE COLLAR	IRON CONDORS
Similar Strategies	Call Spread, Bull Put Spread	Long Put Butterfly, Neutral Calendar Spread
Disadvantage	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.	• Full of risk. • Unlimited maximum loss.
Advantages	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.	• Chance to gather double premium. • Sure, maximum gains on one-half the trade. • Flexible and double leverage at half price.