LONG CALL	IRON BUTTERFLY
About Strategy	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: 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..

LONG CALL Vs IRON BUTTERFLY - Details

	LONG CALL	IRON BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	4
Strategy Level	Beginner Level	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price + Premium	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

LONG CALL Vs IRON BUTTERFLY - When & How to use ?

	LONG CALL	IRON BUTTERFLY
Market View	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)	Neutral
When to use?	This strategy work when an investor expect the underlying instrument move in upward direction.	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.
Action	Buying Call option	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Strike price + Premium	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

LONG CALL Vs IRON BUTTERFLY - Risk & Reward

	LONG CALL	IRON BUTTERFLY
Maximum Profit Scenario	Underlying Asset close above from the strike price on expiry.	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Premium Paid	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

LONG CALL Vs IRON BUTTERFLY - Strategy Pros & Cons

	LONG CALL	IRON BUTTERFLY
Similar Strategies	Protective Put	Long Put Butterfly, Neutral Calendar Spread
Disadvantage	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.	• Large commissions involved. • Probability of losses are higher.
Advantages	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.	• 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.