REVERSE IRON BUTTERFLY	CALL BACKSPREAD
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..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

REVERSE IRON BUTTERFLY Vs CALL BACKSPREAD - Details

	REVERSE IRON BUTTERFLY	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	4	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	REVERSE IRON BUTTERFLY	CALL BACKSPREAD
Market View	Neutral	Bullish
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 used when the investor expects the price of the stock to rise in the future.
Action	Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 OTM Call	Sell 1 ITM Call, BUY 2 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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

REVERSE IRON BUTTERFLY Vs CALL BACKSPREAD - Risk & Reward

	REVERSE IRON BUTTERFLY	CALL BACKSPREAD
Maximum Profit Scenario	Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Limited	Unlimited

REVERSE IRON BUTTERFLY Vs CALL BACKSPREAD - Strategy Pros & Cons

	REVERSE IRON BUTTERFLY	CALL BACKSPREAD
Similar Strategies	Short Put Butterfly, Short Condor	-
Disadvantage	• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.
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.	• Unlimited profit potential.