Also known as: Long Iron Butterfly
Buy the ATM straddle, sell the wings. Defined-risk big-move bet, cheaper than a straddle.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Buy the at-the-money straddle, sell the wings. A cheaper straddle with capped payout: profit grows until the stock reaches either wing, then flattens.
A defined-cost volatility bet when you expect a solid move but not a moonshot — selling the wings refunds the part of the straddle you did not expect to use.
Maximum loss is the net debit at the body strike. The wings you sold cap the home-run scenario — this trade monetizes a move, not a meltdown.
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.