REVERSE IRON BUTTERFLY	THE COLLAR
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..	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..

REVERSE IRON BUTTERFLY Vs THE COLLAR - Details

	REVERSE IRON BUTTERFLY	THE COLLAR
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put 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 Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Price of Features - Call Premium + Put Premium

REVERSE IRON BUTTERFLY Vs THE COLLAR - When & How to use ?

	REVERSE IRON BUTTERFLY	THE COLLAR
Market View	Neutral	Bullish
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.	It should be used only in case where trader is certain about the bearish market view.
Action	Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 OTM Call	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call 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	Price of Features - Call Premium + Put Premium

REVERSE IRON BUTTERFLY Vs THE COLLAR - Risk & Reward

	REVERSE IRON BUTTERFLY	THE COLLAR
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 Short Call - Purchase Price of Underlying + Net Premium Received
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

REVERSE IRON BUTTERFLY Vs THE COLLAR - Strategy Pros & Cons

	REVERSE IRON BUTTERFLY	THE COLLAR
Similar Strategies	Short Put Butterfly, Short Condor	Call Spread, Bull Put Spread
Disadvantage	• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
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.	• 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.