PUT BACKSPREAD	REVERSE 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..	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..

PUT BACKSPREAD Vs REVERSE IRON BUTTERFLY - Details

	PUT BACKSPREAD	REVERSE 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 Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

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

	PUT BACKSPREAD	REVERSE IRON BUTTERFLY
Market View	Bearish	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.
Action		Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 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

PUT BACKSPREAD Vs REVERSE IRON BUTTERFLY - Risk & Reward

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

PUT BACKSPREAD Vs REVERSE IRON BUTTERFLY - Strategy Pros & Cons

	PUT BACKSPREAD	REVERSE IRON BUTTERFLY
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.