BEAR PUT SPREAD	IRON BUTTERFLY
About Strategy	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM Read more..	Iron Butterfly Option Strategy  This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements. A trader will buy 1 OTM Put Option, sell 1 ATM Put Option, sell 1 ATM Call Option, buy 1 OTM Call Option. Due to offsetting of long and short positions, this strategy bags limited profit with limited risk. Read more..

BEAR PUT SPREAD Vs IRON BUTTERFLY - Details

	BEAR PUT SPREAD	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	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Net Premium	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

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

	BEAR PUT SPREAD	IRON BUTTERFLY
Market View	Bearish	Neutral
When to use?	The bear call spread options strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.
Action	Buy ITM Put Option, Sell OTM Put Option	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Strike Price of Long Put - Net Premium	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

BEAR PUT SPREAD Vs IRON BUTTERFLY - Risk & Reward

	BEAR PUT SPREAD	IRON BUTTERFLY
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

BEAR PUT SPREAD Vs IRON BUTTERFLY - Strategy Pros & Cons

	BEAR PUT SPREAD	IRON BUTTERFLY
Similar Strategies	Bear Call Spread, Bull Call Spread	Long Put Butterfly, Neutral Calendar Spread
Disadvantage	• Limited profit. • Early assignment risk.	• Large commissions involved. • Probability of losses are higher.
Advantages	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.	• Less amount of capital investment, steady income with low risk. • Traders can predict maximum loss and profit. • Versatile strategy, investors can transform position into bear call spread or bull put spread easily.