REVERSE IRON CONDOR	THE COLLAR
About Strategy	Reverse Iron Condor Option Strategy Reverse Iron Condor as the name suggests is the opposite of Iron Condors. In Reverse Iron Condor, a trader is bullish about volatility and expects the market to make a significant move in the near future in either direction. Here a trader will buy 1 OTM Call Option, sell 1 Deep OTM Call Option, buy 1 OTM Put Option, sell 1 Deep OTM Put Option. This strategy also Read more..	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op .. Read more..

REVERSE IRON CONDOR Vs THE COLLAR - Details

	REVERSE IRON CONDOR	THE COLLAR
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option) + Underlying
Number Of Positions	4	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Price of Features - Call Premium + Put Premium

REVERSE IRON CONDOR Vs THE COLLAR - When & How to use ?

	REVERSE IRON CONDOR	THE COLLAR
Market View	Neutral	Bullish
When to use?	In Reverse Iron Condor, a trader is bullish about volatility and expects the market to make a significant move in the near future in either direction	It should be used only in case where trader is certain about the bearish market view.
Action	Buy 1 OTM Put, Sell 1 OTM Put (Lower Strike), Buy 1 OTM Call, Sell 1 OTM Call (Higher Strike)	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option
Breakeven Point	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Price of Features - Call Premium + Put Premium

REVERSE IRON CONDOR Vs THE COLLAR - Risk & Reward

	REVERSE IRON CONDOR	THE COLLAR
Maximum Profit Scenario	Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

REVERSE IRON CONDOR Vs THE COLLAR - Strategy Pros & Cons

	REVERSE IRON CONDOR	THE COLLAR
Similar Strategies	Short Condor	Call Spread, Bull Put Spread
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
Advantages	• 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.	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.