IRON BUTTERFLY	SYNTHETIC LONG CALL
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..	Synthetic Long Call Option Strategy A trader is bullish in nature for short term, but also fearful about the downside risk associated with it. Here, a trader wants to hold an underlying asset either in physical form like in case of commodities or demat (electronic) form in case of stocks. But he is always exposed to downside risk and in order to mitigate his losses, .. Read more..

IRON BUTTERFLY Vs SYNTHETIC LONG CALL - Details

	IRON BUTTERFLY	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	4	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	When Price of Underlying > Purchase Price of Underlying + Premium Paid
Risk Profile	Limited	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Underlying Price + Put Premium

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

	IRON BUTTERFLY	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call	Buy 1 ATM Put or OTM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Underlying Price + Put Premium

IRON BUTTERFLY Vs SYNTHETIC LONG CALL - Risk & Reward

	IRON BUTTERFLY	SYNTHETIC LONG CALL
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

IRON BUTTERFLY Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	IRON BUTTERFLY	SYNTHETIC LONG CALL
Similar Strategies	Long Put Butterfly, Neutral Calendar Spread	Protective Put, Long Call
Disadvantage	• Large commissions involved. • Probability of losses are higher.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
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.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.