Inverse Iron Butterfly Calculator

Search a symbol to visualize the potential profit and loss for a inverse iron butterfly option strategy.

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What is a inverse iron butterfly?

DirectionalLimited ProfitLimited Loss

The opposite of a iron butterfly. This strategy is a net debit and unlike the long butterfly, it doesn't offer a very risk/reward ratio. If the stock moves in either direction you can net a small profit.

If volatility increases, the profitable range and chance of profit will increase as well. Time is harmful when the position is unprofitable, but helpful once it becomes profitable.

(also known as: Long Iron Butterfly)
ABCProfitLossStock Price
  • Sell a put at strike A
  • Buy a put at strike B
  • Buy a call at strike B
  • Sell a call at strike C