LONG CALL	REVERSE IRON BUTTERFLY
About Strategy	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: 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..

LONG CALL Vs REVERSE IRON BUTTERFLY - Details

	LONG CALL	REVERSE IRON BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	4
Strategy Level	Beginner Level	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	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

LONG CALL Vs REVERSE IRON BUTTERFLY - When & How to use ?

	LONG CALL	REVERSE IRON BUTTERFLY
Market View	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)	Neutral
When to use?	This strategy work when an investor expect the underlying instrument move in upward direction.	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	Buying Call 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

LONG CALL Vs REVERSE IRON BUTTERFLY - Risk & Reward

	LONG CALL	REVERSE IRON BUTTERFLY
Maximum Profit Scenario	Underlying Asset close above from the strike price on expiry.	Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Premium Paid	Net Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

LONG CALL Vs REVERSE IRON BUTTERFLY - Strategy Pros & Cons

	LONG CALL	REVERSE IRON BUTTERFLY
Similar Strategies	Protective Put	Short Put Butterfly, Short Condor
Disadvantage	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.	• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.
Advantages	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.	• 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.