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iron butterfly strategy explained

Option Strategies – Iron Butterfly Option Strategy ?

What is the Iron Butterfly Option Strategy ?

Options provide a variety of money-making tactics that cannot be matched with traditional equities, and not all of them are high-risk endeavors. The iron butterfly technique, for example, can provide consistent income while limiting risks and profits.
Because each strategy is named after a flying species like a butterfly or condor, the iron butterfly option strategy approach is part of a collection of option strategies known as “wingspreads.” A bear call spread and a bull put spread with the same expiration date that converge at a middle strike price make up the strategy.

The “body” of the butterfly is formed by a short call and put sold … Read the rest