Also known as: Iron Fly
Sell ATM put & call + buy wings. Max profit at the body strike.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Sell an at-the-money straddle and buy protective wings on both sides. Bigger credit than an iron condor, tighter profit zone.
When you expect the stock to pin near the current price and implied volatility is elevated — you are selling the most valuable options on the board with protection.
Defined by the wings, but breakevens hug the current price — this needs stillness. Compare it against the iron condor in the Lab and watch the payoff trade width for credit.
Similar: Same family — defined-risk neutral premium selling.
Different: Butterfly = bigger credit, narrower window; condor = smaller credit, wider window.
Similar: Nearly identical payoff shape centered on the body strike.
Different: The iron version opens for a CREDIT using both puts and calls; the call butterfly opens for a debit in one type.
New to options? Start with the free curriculum — or see which strategy fits your outlook.
Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.