IRON BUTTERFLY	LONG PUT
About Strategy	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 Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

IRON BUTTERFLY Vs LONG PUT - Details

	IRON BUTTERFLY	LONG PUT
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	4	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Strike Price of Long Put - Premium Paid

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

	IRON BUTTERFLY	LONG PUT
Market View	Neutral	Bearish
When to use?	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call	Buy Put Option
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Strike Price of Long Put - Premium Paid

IRON BUTTERFLY Vs LONG PUT - Risk & Reward

	IRON BUTTERFLY	LONG PUT
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

IRON BUTTERFLY Vs LONG PUT - Strategy Pros & Cons

	IRON BUTTERFLY	LONG PUT
Similar Strategies	Long Put Butterfly, Neutral Calendar Spread	Protective Call, Short Put
Disadvantage	• Large commissions involved. • Probability of losses are higher.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages	• 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.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.