🦋 Iron Condor & Butterfly

Combination of a Bull Put Spread (below) + Bear Call Spread (above). Maximum profit when the price stays between the two short strikes at expiry.

When to use: You expect low price movement (low volatility expected) and want to benefit from time/volatility decay. Typical after high IV periods (e.g. after earnings).

💡 sTraderZ.com recognises an Iron Condor as Long Put + Short Put + Short Call + Long Call (4 legs, all different strikes) (↔️ Neutral).

Like an Iron Condor, but both short strikes are ATM (same strike for short call and short put). Higher premium but narrower profit zone — the price must stay close to the entry price.

When to use: You expect minimal price movement. Higher profit potential than an Iron Condor but also more sensitive to price swings.

💡 sTraderZ.com recognises an Iron Butterfly as Short Call + Short Put (same strike) + Long Put (lower) + Long Call (higher) (↔️ Neutral).

Reverse Iron Condor: you buy the inner spread and sell the outer wings. You pay a net debit and profit when the price breaks strongly out of the middle.

When to use: You expect a large price move (high volatility) but are unsure of the direction. Cheaper than a straddle but with limited profit potential.

💡 In sTraderZ.com this strategy is stored in the system as "Iron Condor" (the detector does not distinguish between the normal and reverse variant). The market outlook and chart visualisation help you determine the direction manually.

Reverse Iron Butterfly: Long Call + Long Put (both ATM), Short Call + Short Put (both OTM). Profits from strong price moves in either direction.

When to use: You expect a very strong price move (e.g. before earnings) but want to limit risk compared to a straddle.

💡 In sTraderZ.com this strategy is stored in the system as "Iron Butterfly" (the detector does not distinguish between the normal and reverse variant). The market outlook and chart visualisation help you determine the direction manually.