LONG CALL BUTTERFLY	THE COLLAR
About Strategy	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho Read more..	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op .. Read more..

LONG CALL BUTTERFLY Vs THE COLLAR - Details

	LONG CALL BUTTERFLY	THE COLLAR
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option) + Underlying
Number Of Positions	4	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Price of Features - Call Premium + Put Premium

LONG CALL BUTTERFLY Vs THE COLLAR - When & How to use ?

	LONG CALL BUTTERFLY	THE COLLAR
Market View	Neutral	Bullish
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.	It should be used only in case where trader is certain about the bearish market view.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Price of Features - Call Premium + Put Premium

LONG CALL BUTTERFLY Vs THE COLLAR - Risk & Reward

	LONG CALL BUTTERFLY	THE COLLAR
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received
Maximum Loss Scenario	Net Premium Paid	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

LONG CALL BUTTERFLY Vs THE COLLAR - Strategy Pros & Cons

	LONG CALL BUTTERFLY	THE COLLAR
Similar Strategies	-	Call Spread, Bull Put Spread
Disadvantage	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
Advantages	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.