IRON BUTTERFLY	PROTECTIVE CALL
About Strategy	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..	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The .. Read more..

IRON BUTTERFLY Vs PROTECTIVE CALL - Details

	IRON BUTTERFLY	PROTECTIVE CALL
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call 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 Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Sale Price of Underlying + Premium Paid

IRON BUTTERFLY Vs PROTECTIVE CALL - When & How to use ?

	IRON BUTTERFLY	PROTECTIVE CALL
Market View	Neutral	Bearish
When to use?	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call	Buy 1 ATM Call
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Sale Price of Underlying + Premium Paid

IRON BUTTERFLY Vs PROTECTIVE CALL - Risk & Reward

	IRON BUTTERFLY	PROTECTIVE CALL
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

IRON BUTTERFLY Vs PROTECTIVE CALL - Strategy Pros & Cons

	IRON BUTTERFLY	PROTECTIVE CALL
Similar Strategies	Long Put Butterfly, Neutral Calendar Spread	Put Backspread, Long Put
Disadvantage	• Large commissions involved. • Probability of losses are higher.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• 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.	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.