Iron Butterfly: Selling a Straddle With Protection
Condors and ButterfliesThe iron butterfly sells an at-the-money call and put together, then buys further out strikes on each side to limit potential losses.
0:00 Introduction: Iron Butterfly Basics
0:44 Selling Straddle: 90 Strike Put and Call
2:26 Buying Wings for Protection
2:43 Net Credit Calculation: $7
2:49 Maximum Profit and Loss Analysis
3:12 Break Even Points: $83 and $97
3:43 Ideal Outcome: Stock at $90
Register to view the complete Four Legs, One Position: How Condors and Butterflies Are Built webinar: https://bit.ly/4gmJCWo.
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