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Comparision (REVERSE IRON CONDOR VS MARRIED PUT )

 

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  REVERSE IRON CONDOR MARRIED PUT
About Strategy

Reverse Iron Condor Option Strategy

Reverse Iron Condor as the name suggests is the opposite of Iron Condors. In Reverse Iron Condor, a trader is bullish about volatility and expects the market to make a significant move in the near future in either direction. Here a trader will buy 1 OTM Call Option, sell 1 Deep OTM Call Option, buy 1 OTM Put Option, sell 1 Deep OTM Put Option. This strategy also

Married Put Option Strategy

This strategy is applied when trader goes long on the underlying asset i.e. he buys the stock in cash market. He has a bullish view and expects the market to rise in the near future, but simultaneously has the fear of downward movement of the markets. In order to cover his position from vulnerabilities he buys one ATM Put Option of the same underlying asset. Here, a trader wi ..

REVERSE IRON CONDOR Vs MARRIED PUT - Details

REVERSE IRON CONDOR MARRIED 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 Unlimited
Risk Profile Limited Limited
Breakeven Point Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid Purchase Price of Underlying + Premium Paid

REVERSE IRON CONDOR Vs MARRIED PUT - When & How to use ?

REVERSE IRON CONDOR MARRIED PUT
Market View Neutral Bullish
When to use? In Reverse Iron Condor, a trader is bullish about volatility and expects the market to make a significant move in the near future in either direction This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action Buy 1 OTM Put, Sell 1 OTM Put (Lower Strike), Buy 1 OTM Call, Sell 1 OTM Call (Higher Strike) Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid Purchase Price of Underlying + Premium Paid

REVERSE IRON CONDOR Vs MARRIED PUT - Risk & Reward

REVERSE IRON CONDOR MARRIED PUT
Maximum Profit Scenario Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario Net Premium Paid + Commissions Paid Max Loss = Premium Paid + Commissions Paid
Risk Limited Limited
Reward Limited Unlimited

REVERSE IRON CONDOR Vs MARRIED PUT - Strategy Pros & Cons

REVERSE IRON CONDOR MARRIED PUT
Similar Strategies Short Condor Long Call
Disadvantage • Potential loss is higher than gain. • Limited profit. Cost of the put options eats into profit margin.
Advantages • 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. Unlimited Profit and Limited Risk

REVERSE IRON CONDOR

MARRIED PUT