REVERSE IRON BUTTERFLY	RATIO PUT SPREAD
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..	Ratio Put Spread Option Strategy  This strategy involves buying ITM Puts and simultaneously selling OTM Puts, double the number of ITM Puts. This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. Read more..

REVERSE IRON BUTTERFLY Vs RATIO PUT SPREAD - Details

	REVERSE IRON BUTTERFLY	RATIO PUT SPREAD
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	4	3
Strategy Level	Advance	Beginners
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	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

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

	REVERSE IRON BUTTERFLY	RATIO PUT SPREAD
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 used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 OTM Call	Buy 1 ITM Put, Sell 2 OTM Puts
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 Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

REVERSE IRON BUTTERFLY Vs RATIO PUT SPREAD - Risk & Reward

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

REVERSE IRON BUTTERFLY Vs RATIO PUT SPREAD - Strategy Pros & Cons

	REVERSE IRON BUTTERFLY	RATIO PUT SPREAD
Similar Strategies	Short Put Butterfly, Short Condor	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.	• Unlimited potential risk. • Limited profit.
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.	• Directional strategy so that there is either no upside or downside risk. • Able to profit even if trader is neutral on the market. • Higher probability of profit.