IRON BUTTERFLY	LONG COMBO
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..	Long Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received .. Read more..

IRON BUTTERFLY Vs LONG COMBO - Details

	IRON BUTTERFLY	LONG COMBO
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + 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 Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Call Strike + Net Premium

IRON BUTTERFLY Vs LONG COMBO - When & How to use ?

	IRON BUTTERFLY	LONG COMBO
Market View	Neutral	Bullish
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 used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.
Action	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Call Strike + Net Premium

IRON BUTTERFLY Vs LONG COMBO - Risk & Reward

	IRON BUTTERFLY	LONG COMBO
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Underlying asset goes down and Put option exercised
Risk	Limited	Unlimited
Reward	Limited	Unlimited

IRON BUTTERFLY Vs LONG COMBO - Strategy Pros & Cons

	IRON BUTTERFLY	LONG COMBO
Similar Strategies	Long Put Butterfly, Neutral Calendar Spread	-
Disadvantage	• Large commissions involved. • Probability of losses are higher.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
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.	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.