DIAGONAL BULL CALL SPREAD	IRON BUTTERFLY
About Strategy	Diagonal Bull Call Spread Option Strategy This strategy is implemented by a trader when he is neutral – moderately bullish in the near-month contract and bullish in the mid-month contract. It involves sale of 1 Near-Month OTM Call Option and buying of 1 Mid Month ITM Call Option. Risk: 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..

DIAGONAL BULL CALL SPREAD Vs IRON BUTTERFLY - Details

	DIAGONAL BULL CALL SPREAD	IRON BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point		Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

DIAGONAL BULL CALL SPREAD Vs IRON BUTTERFLY - When & How to use ?

	DIAGONAL BULL CALL SPREAD	IRON BUTTERFLY
Market View	Bullish	Neutral
When to use?		This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call
Breakeven Point		Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

DIAGONAL BULL CALL SPREAD Vs IRON BUTTERFLY - Risk & Reward

	DIAGONAL BULL CALL SPREAD	IRON BUTTERFLY
Maximum Profit Scenario		Net Premium Received - Commissions Paid
Maximum Loss Scenario		Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

DIAGONAL BULL CALL SPREAD Vs IRON BUTTERFLY - Strategy Pros & Cons

	DIAGONAL BULL CALL SPREAD	IRON BUTTERFLY
Similar Strategies	Bull Put Spread	Long Put Butterfly, Neutral Calendar Spread
Disadvantage		• Large commissions involved. • Probability of losses are higher.
Advantages		• 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.