The iron butterfly is an advanced strategy that employs four option contracts at three different strikes. The trade is composed of two sold options -- one call and one put -- at the center strike ...

The iron butterfly options strategy may sound complicated, but it’s simply a hedged straddle. To protect against a decline in the underlying security’s price on a straddle, a seller could also ...

Advanced traders may feel comfortable with iron condor or butterfly strategies, while less experienced traders may prefer covered calls or long straddles. The safest neutral options strategy is ...

A short iron butterfly spread is a four-legged strategy that consists of a Bull Put Spread and a Bear Call Spread in which ...

The iron condor is a four-legged options strategy intended to capitalize on a period of muted, low-volatility price action in the underlying security. This play is essentially the combination of a ...

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

A short iron butterfly spread is a four-legged strategy that consists of a Bull Put Spread and a Bear Call Spread in which the Short Put and Short Call have the same strike price. All options will ...

Furthermore, Options strategies involve executing more than one option position simultaneously to minimize the risk and maximize returns. Iron butterfly is one of the many option trading strategies.