IRON BUTTERFLY	SHORT PUT
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..	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

IRON BUTTERFLY Vs SHORT PUT - Details

	IRON BUTTERFLY	SHORT PUT
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	4	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
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	Strike Price - Premium

IRON BUTTERFLY Vs SHORT PUT - When & How to use ?

	IRON BUTTERFLY	SHORT PUT
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 works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call	Sell Put 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	Strike Price - Premium

IRON BUTTERFLY Vs SHORT PUT - Risk & Reward

	IRON BUTTERFLY	SHORT PUT
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Limited	Limited

IRON BUTTERFLY Vs SHORT PUT - Strategy Pros & Cons

	IRON BUTTERFLY	SHORT PUT
Similar Strategies	Long Put Butterfly, Neutral Calendar Spread	Bull Put Spread, Short Starddle
Disadvantage	• Large commissions involved. • Probability of losses are higher.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
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.	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.