BULL PUT SPREAD	IRON BUTTERFLY
About Strategy	Bull Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem Read more..	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..

BULL PUT SPREAD Vs IRON BUTTERFLY - Details

	BULL PUT SPREAD	IRON BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	4
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

BULL PUT SPREAD Vs IRON BUTTERFLY - When & How to use ?

	BULL PUT SPREAD	IRON BUTTERFLY
Market View	Bullish	Neutral
When to use?	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.
Action	Buy OTM Put Option, Sell ITM Put Option	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

BULL PUT SPREAD Vs IRON BUTTERFLY - Risk & Reward

	BULL PUT SPREAD	IRON BUTTERFLY
Maximum Profit Scenario	Max Profit = Net Premium Received	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

BULL PUT SPREAD Vs IRON BUTTERFLY - Strategy Pros & Cons

	BULL PUT SPREAD	IRON BUTTERFLY
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Long Put Butterfly, Neutral Calendar Spread
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Large commissions involved. • Probability of losses are higher.
Advantages	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.	• 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.