SYNTHETIC LONG CALL	REVERSE IRON BUTTERFLY
About Strategy	Synthetic Long Call Option Strategy A trader is bullish in nature for short term, but also fearful about the downside risk associated with it. Here, a trader wants to hold an underlying asset either in physical form like in case of commodities or demat (electronic) form in case of stocks. But he is always exposed to downside risk and in order to mitigate his losses, Read more..	Reverse Iron Butterfly Option Strategy Reverse Iron Butterfly as the name suggests is the opposite of Iron Butterfly. In Reverse Iron Butterfly, a trader is bullish on volatility and expects the market to make significant move in the near future in either directions. Here a trader will buy 1 ATM Call Option, sell 1 OTM Call Option, buy 1 ATM Put Option, sell 1 OTM Put Option. This strategy also bags lim .. Read more..

SYNTHETIC LONG CALL Vs REVERSE IRON BUTTERFLY - Details

	SYNTHETIC LONG CALL	REVERSE IRON BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	When Price of Underlying > Purchase Price of Underlying + Premium Paid	Limited
Risk Profile	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)	Limited
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

SYNTHETIC LONG CALL Vs REVERSE IRON BUTTERFLY - When & How to use ?

	SYNTHETIC LONG CALL	REVERSE IRON BUTTERFLY
Market View	Bullish	Neutral
When to use?	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.	This strategy is used when a trader is bullish on volatility and expects the market to make significant move in the near future in either directions.
Action	Buy 1 ATM Put or OTM Put	Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 OTM Call
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

SYNTHETIC LONG CALL Vs REVERSE IRON BUTTERFLY - Risk & Reward

	SYNTHETIC LONG CALL	REVERSE IRON BUTTERFLY
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Premium Paid	Net Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs REVERSE IRON BUTTERFLY - Strategy Pros & Cons

	SYNTHETIC LONG CALL	REVERSE IRON BUTTERFLY
Similar Strategies	Protective Put, Long Call	Short Put Butterfly, Short Condor
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• 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, volatile strategy.