Iron butterfly
Like an iron condor but with the short put and short call at the same strike (ATM). Higher credit, narrower profit zone — peaks if stock pins the short strike at expiry.
INPUTS
Underlying price
$
Centers the payoff chart and computes P&L at this price.
LEGS
Long lower put
Type
Side
Strike
$
Qty
Premium
$
Short ATM put
Type
Side
Strike
$
Qty
Premium
$
Short ATM call
Type
Side
Strike
$
Qty
Premium
$
Long upper call
Type
Side
Strike
$
Qty
Premium
$
RESULT
$60.003 strikes$140.00
P&L at current spot (expiry)
+$400
Net credit+$400
Max profit+$400
Max loss−$100
Breakevens$96.00 · $104.00
Risk / reward4.00 : 1
RISK PROFILE
Max profit
Net credit received
Max loss
Wing width × 100 − net credit
Breakeven
Short strike ± (credit ÷ 100)
RELATED STRATEGIES
NEXT
Done planning? Log the trade.
Sutekka journals every leg automatically — and shows you the actual P&L when you close it. Free forever.
Start logging — free