SHORT PUT	REVERSE IRON BUTTERFLY
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..	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..

SHORT PUT Vs REVERSE IRON BUTTERFLY - Details

	SHORT PUT	REVERSE IRON BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	4
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price - Premium	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

SHORT PUT Vs REVERSE IRON BUTTERFLY - When & How to use ?

	SHORT PUT	REVERSE IRON BUTTERFLY
Market View	Bullish	Neutral
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	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.
Action	Sell Put Option	Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 OTM Call
Breakeven Point	Strike Price - Premium	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

SHORT PUT Vs REVERSE IRON BUTTERFLY - Risk & Reward

	SHORT PUT	REVERSE IRON BUTTERFLY
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Net Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Limited

SHORT PUT Vs REVERSE IRON BUTTERFLY - Strategy Pros & Cons

	SHORT PUT	REVERSE IRON BUTTERFLY
Similar Strategies	Bull Put Spread, Short Starddle	Short Put Butterfly, Short Condor
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.	• 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.