LONG PUT LADDER	IRON BUTTERFLY
About Strategy	Long Put Ladder Option Strategy  Long Put Ladder can be implemented when a trader is slightly bearish on the market and volatility. It involves buying of an ITM Put Option and sale of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is unlimited and reward 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..

LONG PUT LADDER Vs IRON BUTTERFLY - Details

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

LONG PUT LADDER Vs IRON BUTTERFLY - When & How to use ?

	LONG PUT LADDER	IRON BUTTERFLY
Market View	Neutral	Neutral
When to use?	This Strategy can be implemented when a trader is slightly bearish 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	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

LONG PUT LADDER Vs IRON BUTTERFLY - Risk & Reward

	LONG PUT LADDER	IRON BUTTERFLY
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid	Net Premium Received - Commissions Paid
Maximum Loss Scenario	When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Limited

LONG PUT LADDER Vs IRON BUTTERFLY - Strategy Pros & Cons

	LONG PUT LADDER	IRON BUTTERFLY
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Long Put Butterfly, Neutral Calendar Spread
Disadvantage	• Unlimited risk. • Margin required.	• Large commissions involved. • Probability of losses are higher.
Advantages	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	• 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.