IRON BUTTERFLY	LONG PUT LADDER
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..	Long Put Ladder Option Strategy  Long Put Ladder can be implemented when a trader is slightly bearish on the market and volatility. It involves buying of an ITM Put Option and sale of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is unlimited and reward is limited. Risk:< .. Read more..

IRON BUTTERFLY Vs LONG PUT LADDER - Details

	IRON BUTTERFLY	LONG PUT LADDER
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	4	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid

IRON BUTTERFLY Vs LONG PUT LADDER - When & How to use ?

	IRON BUTTERFLY	LONG PUT LADDER
Market View	Neutral	Neutral
When to use?	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.	This Strategy can be implemented when a trader is slightly bearish on the market and volatility.
Action	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid

IRON BUTTERFLY Vs LONG PUT LADDER - Risk & Reward

	IRON BUTTERFLY	LONG PUT LADDER
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

IRON BUTTERFLY Vs LONG PUT LADDER - Strategy Pros & Cons

	IRON BUTTERFLY	LONG PUT LADDER
Similar Strategies	Long Put Butterfly, Neutral Calendar Spread	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
Disadvantage	• Large commissions involved. • Probability of losses are higher.	• Unlimited risk. • Margin required.
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.	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.