Short Iron Butterfly Calculator
Search a symbol to visualize the potential profit and loss for a short iron butterfly option strategy.
What is a short iron butterfly?
The opposite of a long 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.
- Sell a put at strike A
- Buy a put at strike B
- Buy a call at strike B
- Sell a call at strike C