SHORT PUT BUTTERFLY	MARRIED PUT
About Strategy	Short Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< Read more..	Married Put Option Strategy This 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 .. Read more..

SHORT PUT BUTTERFLY Vs MARRIED PUT - Details

	SHORT PUT BUTTERFLY	MARRIED PUT
Market View	Neutral	Bullish
Type (CE/PE)	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 Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Purchase Price of Underlying + Premium Paid

SHORT PUT BUTTERFLY Vs MARRIED PUT - When & How to use ?

	SHORT PUT BUTTERFLY	MARRIED PUT
Market View	Neutral	Bullish
When to use?	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.	This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Purchase Price of Underlying + Premium Paid

SHORT PUT BUTTERFLY Vs MARRIED PUT - Risk & Reward

	SHORT PUT BUTTERFLY	MARRIED PUT
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

SHORT PUT BUTTERFLY Vs MARRIED PUT - Strategy Pros & Cons

	SHORT PUT BUTTERFLY	MARRIED PUT
Similar Strategies	Short Condor, Reverse Iron Condor	Long Call
Disadvantage	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.	Cost of the put options eats into profit margin.
Advantages	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.	Unlimited Profit and Limited Risk