An iron butterfly is an options trading strategy that involves buying and selling a combination of call and put options to create a range-bound profit zone. What Is an Iron Butterfly? · Iron Butterfly Trade Example

Essentially, an iron butterfly combines two spread strategies—a bull put spread and a bear call spread. An iron butterfly is a limited risk, limited reward ...

The iron butterfly spread width defines the maximum risk for the strategy. The risk is limited to the spread width minus the premium received. An investor would ...

It is a limited-risk, limited-profit trading strategy that is structured for a larger probability of earning smaller limited profit when the underlying stock is ...

The iron butterfly strategy is a credit spread that involves combining four options, which limits both risk and potential profit. The strategy is best employed ...

An iron butterfly spread is an advanced options strategy involving a short put and a short call spread, meant to converge at a strike price equal to the ...

A short iron butterfly consists of being long a call at an upper strike, short a call and short a put at a middle strike, and long a put at a lower strike.

A short iron butterfly spread is a four-part strategy consisting of a bull put spread and a bear call spread in which the short put and short call have the ...

In this strategy, a butterfly-like image is formed where the Call and Put options of the mid-strike price form the 'body' and Call and Put options at higher and ...

An Iron Butterfly Strategy or Iron Fly Strategy is an options trading strategy that combines multiple call and put options to devise a market neutral ...