PUT BACKSPREAD	IRON BUTTERFLY
About Strategy	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. 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..

PUT BACKSPREAD Vs IRON BUTTERFLY - Details

	PUT BACKSPREAD	IRON BUTTERFLY
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	4
Strategy Level	Advance	Advance
Reward Profile		Limited
Risk Profile		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

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

	PUT BACKSPREAD	IRON BUTTERFLY
Market View	Bearish	Neutral
When to use?		This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.
Action		Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call
Breakeven Point		Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

PUT BACKSPREAD Vs IRON BUTTERFLY - Risk & Reward

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

PUT BACKSPREAD Vs IRON BUTTERFLY - Strategy Pros & Cons

	PUT BACKSPREAD	IRON BUTTERFLY
Similar Strategies		Long Put Butterfly, Neutral Calendar Spread
Disadvantage		• Large commissions involved. • Probability of losses are higher.
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.