REVERSE IRON BUTTERFLY	IRON BUTTERFLY
About Strategy	Reverse Iron Butterfly Option Strategy Reverse Iron Butterfly as the name suggests is the opposite of Iron Butterfly. In Reverse Iron Butterfly, a trader is bullish on volatility and expects the market to make significant move in the near future in either directions. Here a trader will buy 1 ATM Call Option, sell 1 OTM Call Option, buy 1 ATM Put Option, sell 1 OTM Put Option. This strategy also bags lim 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..

REVERSE IRON BUTTERFLY Vs IRON BUTTERFLY - Details

	REVERSE IRON BUTTERFLY	IRON BUTTERFLY
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	4
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = 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

REVERSE IRON BUTTERFLY Vs IRON BUTTERFLY - When & How to use ?

	REVERSE IRON BUTTERFLY	IRON BUTTERFLY
Market View	Neutral	Neutral
When to use?	This strategy is used when a trader is bullish on volatility and expects the market to make significant move in the near future in either directions.	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.
Action	Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 OTM Call	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 Call + Net Premium Paid, Lower Breakeven Point = 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

REVERSE IRON BUTTERFLY Vs IRON BUTTERFLY - Risk & Reward

	REVERSE IRON BUTTERFLY	IRON BUTTERFLY
Maximum Profit Scenario	Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

REVERSE IRON BUTTERFLY Vs IRON BUTTERFLY - Strategy Pros & Cons

	REVERSE IRON BUTTERFLY	IRON BUTTERFLY
Similar Strategies	Short Put Butterfly, Short Condor	Long Put Butterfly, Neutral Calendar Spread
Disadvantage	• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.	• Large commissions involved. • Probability of losses are higher.
Advantages	• Able to profit whether stocks move in either direction up or down. • This strategy can be used by option traders who cannot use credit spreads. • Predictable maximum loss and profits, volatile strategy.	• 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.