IRON BUTTERFLY	PUT BACKSPREAD
About Strategy	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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

IRON BUTTERFLY Vs PUT BACKSPREAD - Details

	IRON BUTTERFLY	PUT BACKSPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Advance
Reward Profile	Limited
Risk Profile	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

IRON BUTTERFLY Vs PUT BACKSPREAD - When & How to use ?

	IRON BUTTERFLY	PUT BACKSPREAD
Market View	Neutral	Bearish
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 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

IRON BUTTERFLY Vs PUT BACKSPREAD - Risk & Reward

	IRON BUTTERFLY	PUT BACKSPREAD
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	Unlimited

IRON BUTTERFLY Vs PUT BACKSPREAD - Strategy Pros & Cons

	IRON BUTTERFLY	PUT BACKSPREAD
Similar Strategies	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.