Iron Butterfly

Explore two popular neutral options strategies to take advantage of rangebound sideways markets, with live iron condor and iron butterfly trading examples.

This video highlights new SPX overnight backtest data and two autotrading strategies: a 1DTE iron butterfly based on the research, and 0DTE debit spread bot.

Traders with small accounts should use risk-defined options trading strategies and avoid strategies with undefined risk.

It is important to have an options portfolio with a combination of multiple strategy types each month. This enables you to spread positions out and increases the probability of having profitable trades in any market condition.

Butterfly strategies give you flexibility to exit a trade profitably. Learn how to adjust butterfly positions to maximize your win rate and reduce risk.

A call broken-wing butterfly spread is an advanced bearish option strategy with the goal of having no downside risk. Call broken-wing butterflies consist of buying one in-the-money long call, selling two out-of-the-money short calls, and buying one out-of-the-money long call above the short calls.

An iron butterfly is a multi-leg, risk-defined, neutral strategy with limited profit potential. Iron butterflies have no directional bias and capitalize on a decrease in volatility and minimal movement from the underlying stock.

A put broken-wing butterfly spread is an advanced bullish option strategy with the goal of having no upside risk. Put broken wing butterflies consist of buying one in-the-money long put, selling two out-of-the-money short puts, and buying one out-of-the-money long put below the short puts.