Iron Butterfly

Description

Selling an ATM Straddle and buying an OTM Strangle for protection.

Trading Logic

Limited risk/reward strategy for low volatility.

Practical Example

Stock at $100. Sell $100C/$100P, buy $110C/$90P.

Want to get Iron Butterfly strategy recommendations based on current market data? Use our AI analysis tool to get free personalized options strategy recommendations.

Get Free Strategy Recommendation

P/L Curve

Chart Description
  • X-Axis: Stock price at expiration
  • Y-Axis: Expected P/L ($)
  • Green area: Profit; Red area: Loss