LONG STRADDLE	REVERSE IRON BUTTERFLY
About Strategy	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc 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 STRADDLE Vs REVERSE IRON BUTTERFLY - Details

	LONG STRADDLE	REVERSE IRON BUTTERFLY
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

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

	LONG STRADDLE	REVERSE IRON BUTTERFLY
Market View	Neutral	Neutral
When to use?	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.	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	Buy Call Option, Buy Put Option	Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 OTM Call
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

LONG STRADDLE Vs REVERSE IRON BUTTERFLY - Risk & Reward

	LONG STRADDLE	REVERSE IRON BUTTERFLY
Maximum Profit Scenario	Max profit is achieved when at one option is exercised.	Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Maximum Loss = Net Premium Paid	Net Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

LONG STRADDLE Vs REVERSE IRON BUTTERFLY - Strategy Pros & Cons

	LONG STRADDLE	REVERSE IRON BUTTERFLY
Similar Strategies	Bear Put Spread	Short Put Butterfly, Short Condor
Disadvantage	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.	• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.
Advantages	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.	• 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.