SHORT PUT BUTTERFLY	RISK REVERSAL
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..	Risk Reversal Option Strategy This strategy protects an investor from unfavourable price movements in the position but limits the profits can be made on that position. A risk reversal is a hedging strategy that protects a long or short position by using put and call options. In this one option is buying and other is written. In this strategy the trader has to pay a premium, while the written option prod .. Read more..

SHORT PUT BUTTERFLY Vs RISK REVERSAL - Details

	SHORT PUT BUTTERFLY	RISK REVERSAL
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Unlimited
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	Premium received - Put Strike Price

SHORT PUT BUTTERFLY Vs RISK REVERSAL - When & How to use ?

	SHORT PUT BUTTERFLY	RISK REVERSAL
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 can be used for hedging. When an investor want to protect long or short position by using a call and put option.
Action	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put	This strategy work when an investor want to hedge their position by buying a put option and selling a call 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	Premium received - Put Strike Price

SHORT PUT BUTTERFLY Vs RISK REVERSAL - Risk & Reward

	SHORT PUT BUTTERFLY	RISK REVERSAL
Maximum Profit Scenario	Net Premium Received - Commissions Paid	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid	You have nearly unlimited downside risk as well because you are short the put
Risk	Limited	Unlimited
Reward	Limited	Unlimited

SHORT PUT BUTTERFLY Vs RISK REVERSAL - Strategy Pros & Cons

	SHORT PUT BUTTERFLY	RISK REVERSAL
Similar Strategies	Short Condor, Reverse Iron Condor	-
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.	Unlimited Risk.
Advantages	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.	Unlimited profit.