Short Iron Butterfly Option Screener

[Neutral | Limited Profit | Limited Loss] The short iron butterfly options spread anticipates volatility to decrease and the underlying security to trade within a specific price range. The short iron butterfly option strategy involves buying a put option, selling a put and call option and buying a call option, all at equidistant higher strike prices. The short iron butterfly strategy is a combination of a bull put and a bear call spread. Maximum profit is the difference between the premium received for the short put and short call minus the premium paid for the long put and long call (Net Credit). The maximum loss is the difference between the center and outer strike values minus the Net Credit. The short iron butterfly strategy succeeds if the underlying security is trading within the range between the downside breakeven (middle strike - Net Credit) and upside breakeven (middle strike + Net Credit) at expiration. Maximum profit is achieved if the underlying security lands at the center strike price at expiration.