Report post

Which is better Iron Butterfly or iron condor?

As you can see from the payoff diagrams above, iron condors have a wider profit zone than the iron butterfly. However, the iron butterfly has a higher profit potential than the iron condor. Because the iron butterfly sells ATM options, it has higher vega exposure than the iron condor. What strategy is better?

When should you use iron butterfly & iron condor?

Traders use Iron Butterfly when they expect the market to be calm. The key is the strike price being close to the market price. This strategy shines in a stable market. It caps both the potential loss and gain. Iron Condor is another strategy built for low volatility. It too involves four options.

What are Iron Condors and Iron Butterflies?

Iron condors and iron butterflies are options trading strategies that limit your losses and give you many ways to realize a profit. Traders can use these strategies to profit from markets that go up, down, or sideways. (Read our Advertiser Disclosure)

The World's Leading Crypto Trading Platform

Get my welcome gifts