Sell ATM call + sell ATM put. Max premium collected; UNLIMITED risk both ways.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Sell a call AND a put at the same strike and expiration, collecting both premiums. Maximum profit if the stock pins the strike at expiration; the profit zone extends the collected premium in each direction.
When implied volatility is expensive and you expect the stock to go nowhere — the market has priced a move you do not believe in. Professionals size these tiny and manage early.
UNLIMITED in both directions. One gap through either side can erase months of collected premium. If you want the thesis with a defined floor, the iron butterfly is this trade with wings bought.
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.