Compare Strategies
REVERSE IRON CONDOR | MARRIED PUT | |
---|---|---|
![]() |
![]() |
|
About Strategy |
Reverse Iron Condor Option StrategyReverse Iron Condor as the name suggests is the opposite of Iron Condors. In Reverse Iron Condor, a trader is bullish about volatility and expects the market to make a significant move in the near future in either direction. Here a trader will buy 1 OTM Call Option, sell 1 Deep OTM Call Option, buy 1 OTM Put Option, sell 1 Deep OTM Put Option. This strategy also |
Married Put Option StrategyThis strategy is applied when trader goes long on the underlying asset i.e. he buys the stock in cash market. He has a bullish view and expects the market to rise in the near future, but simultaneously has the fear of downward movement of the markets. In order to cover his position from vulnerabilities he buys one ATM Put Option of the same underlying asset. Here, a trader wi .. |
REVERSE IRON CONDOR Vs MARRIED PUT - Details
REVERSE IRON CONDOR | MARRIED PUT | |
---|---|---|
Market View | Neutral | Bullish |
Type (CE/PE) | CE (Call Option) + PE (Put Option) | PE (Put Option) |
Number Of Positions | 4 | 1 |
Strategy Level | Advance | Beginners |
Reward Profile | Limited | Unlimited |
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 + Premium Paid |
REVERSE IRON CONDOR Vs MARRIED PUT - When & How to use ?
REVERSE IRON CONDOR | MARRIED PUT | |
---|---|---|
Market View | Neutral | Bullish |
When to use? | In Reverse Iron Condor, a trader is bullish about volatility and expects the market to make a significant move in the near future in either direction | This Strategy work when the investor goes long in any stock. He expects the rise in market in future. |
Action | Buy 1 OTM Put, Sell 1 OTM Put (Lower Strike), Buy 1 OTM Call, Sell 1 OTM Call (Higher Strike) | Buy 250 XYZ Shares, Buy 1 ATM 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 + Premium Paid |
REVERSE IRON CONDOR Vs MARRIED PUT - Risk & Reward
REVERSE IRON CONDOR | MARRIED PUT | |
---|---|---|
Maximum Profit Scenario | Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid | Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid |
Maximum Loss Scenario | Net Premium Paid + Commissions Paid | Max Loss = Premium Paid + Commissions Paid |
Risk | Limited | Limited |
Reward | Limited | Unlimited |
REVERSE IRON CONDOR Vs MARRIED PUT - Strategy Pros & Cons
REVERSE IRON CONDOR | MARRIED PUT | |
---|---|---|
Similar Strategies | Short Condor | Long Call |
Disadvantage | • Potential loss is higher than gain. • Limited profit. | Cost of the put options eats into profit margin. |
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. | Unlimited Profit and Limited Risk |