REVERSE IRON BUTTERFLY	PROTECTIVE 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..	Protective Collar Strategy This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost. Buying protective puts can be an expensive proposition and writing OTM calls can defray the cost of the puts quite substantially. Protective Collar is considered as bearish to neutral strategy. In this strategy risk and reward is both are limited. This .. Read more..

REVERSE IRON BUTTERFLY Vs PROTECTIVE COLLAR - Details

	REVERSE IRON BUTTERFLY	PROTECTIVE COLLAR
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Beginners
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	Purchase Price of Underlying + Net Premium Paid

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

	REVERSE IRON BUTTERFLY	PROTECTIVE COLLAR
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 implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 OTM Call	• Short 1 Call Option, • Long 1 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	Purchase Price of Underlying + Net Premium Paid

REVERSE IRON BUTTERFLY Vs PROTECTIVE COLLAR - Risk & Reward

	REVERSE IRON BUTTERFLY	PROTECTIVE 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	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Limited	Limited

REVERSE IRON BUTTERFLY Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	REVERSE IRON BUTTERFLY	PROTECTIVE COLLAR
Similar Strategies	Short Put Butterfly, Short Condor	Bull Put Spread, Bull Call Spread
Disadvantage	• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.	• Potential profit is lower or limited.
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.	The Risk is limited.