Iron Butterfly Calculator

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

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What is a iron butterfly?

NeutralLimited ProfitLimited Loss

An iron butterfly has similar characteristics to a put or call butterfly, but is established as a net credit. It is made of a combination of a bull put spread and a bear call spread.

Volatility should be low to run this strategy, as increasing volatility will narrow the profitable range. Time is helpful when the position is profitable, and harmful when it isn't.

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