IRON BUTTERFLY	BEAR PUT 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..	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM .. Read more..

IRON BUTTERFLY Vs BEAR PUT SPREAD - Details

	IRON BUTTERFLY	BEAR PUT SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Advance
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	Strike Price of Long Put - Net Premium

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

	IRON BUTTERFLY	BEAR PUT SPREAD
Market View	Neutral	Bearish
When to use?	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.	The bear call spread options 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.
Action	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call	Buy ITM Put Option, Sell OTM 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 of Long Put - Net Premium

IRON BUTTERFLY Vs BEAR PUT SPREAD - Risk & Reward

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

IRON BUTTERFLY Vs BEAR PUT SPREAD - Strategy Pros & Cons

	IRON BUTTERFLY	BEAR PUT SPREAD
Similar Strategies	Long Put Butterfly, Neutral Calendar Spread	Bear Call Spread, Bull Call Spread
Disadvantage	• Large commissions involved. • Probability of losses are higher.	• Limited profit. • Early assignment risk.
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.	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.