BEAR CALL SPREAD	IRON BUTTERFLY
About Strategy	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r 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..

BEAR CALL SPREAD Vs IRON BUTTERFLY - Details

	BEAR CALL SPREAD	IRON BUTTERFLY
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Short Call + Net Premium Received	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

BEAR CALL SPREAD Vs IRON BUTTERFLY - When & How to use ?

	BEAR CALL SPREAD	IRON BUTTERFLY
Market View	Bearish	Neutral
When to use?	This strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.
Action	Buy OTM Call Option, Sell ITM Call Option	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Strike Price of Short Call + Net Premium Received	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

BEAR CALL SPREAD Vs IRON BUTTERFLY - Risk & Reward

	BEAR CALL SPREAD	IRON BUTTERFLY
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

BEAR CALL SPREAD Vs IRON BUTTERFLY - Strategy Pros & Cons

	BEAR CALL SPREAD	IRON BUTTERFLY
Similar Strategies	Bear Put Spread, Bull Call Spread	Long Put Butterfly, Neutral Calendar Spread
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• Large commissions involved. • Probability of losses are higher.
Advantages	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of 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.