REVERSE IRON BUTTERFLY	COVERED PUT
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..	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the .. Read more..

REVERSE IRON BUTTERFLY Vs COVERED PUT - Details

	REVERSE IRON BUTTERFLY	COVERED PUT
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option) + Underlying
Number Of Positions	4	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Futures Price + Premium Received

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

	REVERSE IRON BUTTERFLY	COVERED PUT
Market View	Neutral	Bearish
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.	The Covered Put works well when the market is moderately Bearish.
Action	Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 OTM Call	Sell Underlying Sell OTM Put Option
Breakeven Point	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Futures Price + Premium Received

REVERSE IRON BUTTERFLY Vs COVERED PUT - Risk & Reward

	REVERSE IRON BUTTERFLY	COVERED PUT
Maximum Profit Scenario	Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid	The profit happens when the price of the underlying moves above strike price of Short Put.
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

REVERSE IRON BUTTERFLY Vs COVERED PUT - Strategy Pros & Cons

	REVERSE IRON BUTTERFLY	COVERED PUT
Similar Strategies	Short Put Butterfly, Short Condor	Bear Put Spread, Bear Call Spread
Disadvantage	• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
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.	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.