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?

High VolatilityLimited 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, your 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 (at expiration)
  • Sell a put at strike A
  • Buy a put at strike B
  • Buy a call at strike B
  • Sell a call at strike C