Iron Butterfly

Short straddle + long strangle

What is Iron Butterfly?

Iron Butterfly A neutral strategy: sell ATM straddle, buy OTM strangle for protection. Maximum profit if price expires at the short strike. Defined risk.

Complete Definition

A neutral strategy: sell ATM straddle, buy OTM strangle for protection. Maximum profit if price expires at the short strike. Defined risk.

Related Terms

Iron Condor Butterfly Spread Straddle

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