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15-min delayed
Strategy · Live on SPY $652.40
Iron butterfly
advancedaggressive riskShort straddle at ATM + buy OTM wings. High credit, defined risk, very narrow profit zone.
Payoff workbench
Iron butterfly on SPY at $652.40
Expiry
Contracts1
Drag anywhere on the chart to test a price at expiryP/L at expiry · 1 contract (100 sh)
▼ −$4,675
at a lossconsider adjusting
Loss zone — P&L −$3,327 at mid-range.
The position is losing money at this price. Evaluate whether to hold, adjust, or close to prevent further losses.
Credit collected
+$2,325
net across 4 option legs
Your P/L at $726
−$4,675
at the dragged expiry price
Break-even
$626.75
Max loss
−$4,675
Modelled estimate: premiums are approximations from delayed quotes. Confirm at your broker.
Live chain
Pick your strike: SPY puts · 30 days out
How it’s built
The legs: toggle them to see why each one matters
Long 1 put · $590 · 30d
Cost −$95
Short 1 put · $650 · 30d
Premium +$1,120
Short 1 call · $650 · 30d
Premium +$1,360
Long 1 call · $720 · 30d
Cost −$60
Result
Iron butterfly
Net credit ~$5.90. Max profit at $100. Max loss = wing width − credit ≈ $4.10.
Pairs well with
Iron condorOpen →
Put credit spread + call credit spread around the price. Bet on chop.Short straddleOpen →
Sell an ATM call and put. Collect max premium — but lose if the stock makes a big move.Short strangleOpen →
Sell OTM call and OTM put. Collect premium — profit if stock stays between the strikes.Unfamiliar term? The glossary defines it in a sentence, and the plain-English guides cover the ideas in longer form.
Educational only, not financial advice. Quotes delayed at least 15 minutes. Premiums, deltas and probabilities are modelled estimates, not live market quotes. Confirm at your broker. Denaras never places trades.