Chapter 07 | Iron Butterfly | Prebuilt Options Trading Strategies

Iron Butterfly, is a combination of the iron condor, and butterfly strategy. Iron butterfly strategy, aims to create a market-neutral strategy, by combing call and put options, with identical expiration dates, which consolidate at a middle strike price. Iron Butterfly involves, writing a call and put option, at the middle strike price, forming body of the butterfly. At the same time, call and put options are purchased, above and below the strike price, respectively to form the wings.