IRON BUTTERFLY	NEUTRAL CALENDAR SPREAD
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..	Neutral Calendar Spread Option strategy  This strategy is implemented if the trader is neutral in the near future for say 2 months or so. This strategy involves writing of Near Month 1 ATM Call Option and buying 1 Mid Month ATM Call Option, hence reducing the cost of purchase, with the same strike price of the same underlying asset. This strategy is used when the trader wants to make money from the .. Read more..

IRON BUTTERFLY Vs NEUTRAL CALENDAR SPREAD - Details

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

IRON BUTTERFLY Vs NEUTRAL CALENDAR SPREAD - When & How to use ?

	IRON BUTTERFLY	NEUTRAL CALENDAR SPREAD
Market View	Neutral	Neutral
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 implemented if the trader is neutral in the near future for say 2 months or so. This strategy involves writing of Near Month 1 ATM Call Option and buying 1 Mid Month ATM Call Option.
Action	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	-

IRON BUTTERFLY Vs NEUTRAL CALENDAR SPREAD - Risk & Reward

	IRON BUTTERFLY	NEUTRAL CALENDAR SPREAD
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.
Maximum Loss Scenario	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	It occurs when the stock price goes down and stays down until expiration of the longer term options.
Risk	Limited	Limited
Reward	Limited	Limited

IRON BUTTERFLY Vs NEUTRAL CALENDAR SPREAD - Strategy Pros & Cons

	IRON BUTTERFLY	NEUTRAL CALENDAR SPREAD
Similar Strategies	Long Put Butterfly, Neutral Calendar Spread	Long Put Butterfly, Iron Butterfly
Disadvantage	• Large commissions involved. • Probability of losses are higher.	• Lower profitability • Must have enough experience.
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.	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.