CALL BACKSPREAD	REVERSE IRON BUTTERFLY
About Strategy	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r 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..

CALL BACKSPREAD Vs REVERSE IRON BUTTERFLY - Details

	CALL BACKSPREAD	REVERSE IRON BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	4
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

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

	CALL BACKSPREAD	REVERSE IRON BUTTERFLY
Market View	Bullish	Neutral
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	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	Sell 1 ITM Call, BUY 2 OTM Call	Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 OTM Call
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

CALL BACKSPREAD Vs REVERSE IRON BUTTERFLY - Risk & Reward

	CALL BACKSPREAD	REVERSE IRON BUTTERFLY
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Net Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

CALL BACKSPREAD Vs REVERSE IRON BUTTERFLY - Strategy Pros & Cons

	CALL BACKSPREAD	REVERSE IRON BUTTERFLY
Similar Strategies	-	Short Put Butterfly, Short Condor
Disadvantage		• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.
Advantages	• Unlimited profit potential.	• 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.