SHORT PUT LADDER	IRON BUTTERFLY
About Strategy	Short Put Ladder Option Strategy  This strategy is implemented when a trader is slightly bearish on the market. A trader is required to be bullish over the volatility in the market. It involves sale of an ITM Put Option and buying of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is limited. 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..

SHORT PUT LADDER Vs IRON BUTTERFLY - Details

	SHORT PUT LADDER	IRON BUTTERFLY
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put 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	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

SHORT PUT LADDER Vs IRON BUTTERFLY - When & How to use ?

	SHORT PUT LADDER	IRON BUTTERFLY
Market View	Neutral	Neutral
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

SHORT PUT LADDER Vs IRON BUTTERFLY - Risk & Reward

	SHORT PUT LADDER	IRON BUTTERFLY
Maximum Profit Scenario	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

SHORT PUT LADDER Vs IRON BUTTERFLY - Strategy Pros & Cons

	SHORT PUT LADDER	IRON BUTTERFLY
Similar Strategies	Strap, Strip	Long Put Butterfly, Neutral Calendar Spread
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	• Large commissions involved. • Probability of losses are higher.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.	• 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.