RISK REVERSAL	REVERSE IRON BUTTERFLY
About Strategy	Risk Reversal Option Strategy This strategy protects an investor from unfavourable price movements in the position but limits the profits can be made on that position. A risk reversal is a hedging strategy that protects a long or short position by using put and call options. In this one option is buying and other is written. In this strategy the trader has to pay a premium, while the written option prod Read more..	Reverse Iron Butterfly Option Strategy Reverse Iron Butterfly as the name suggests is the opposite of Iron Butterfly. In Reverse Iron Butterfly, a trader is bullish on volatility and expects the market to make significant move in the near future in either directions. Here a trader will buy 1 ATM Call Option, sell 1 OTM Call Option, buy 1 ATM Put Option, sell 1 OTM Put Option. This strategy also bags lim .. Read more..

RISK REVERSAL Vs REVERSE IRON BUTTERFLY - Details

	RISK REVERSAL	REVERSE IRON BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	4
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Premium received - Put Strike Price	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

RISK REVERSAL Vs REVERSE IRON BUTTERFLY - When & How to use ?

	RISK REVERSAL	REVERSE IRON BUTTERFLY
Market View	Bullish	Neutral
When to use?	This strategy can be used for hedging. When an investor want to protect long or short position by using a call and put option.	This strategy is used when a trader is bullish on volatility and expects the market to make significant move in the near future in either directions.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 OTM Call
Breakeven Point	Premium received - Put Strike Price	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

RISK REVERSAL Vs REVERSE IRON BUTTERFLY - Risk & Reward

	RISK REVERSAL	REVERSE IRON BUTTERFLY
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Net Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Unlimited	Limited

RISK REVERSAL Vs REVERSE IRON BUTTERFLY - Strategy Pros & Cons

	RISK REVERSAL	REVERSE IRON BUTTERFLY
Similar Strategies	-	Short Put Butterfly, Short Condor
Disadvantage	Unlimited Risk.	• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.
Advantages	Unlimited profit.	• 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, volatile strategy.