An options strategy that is created butterfly four options at three consecutively higher strike prices. The two options located at stock middle strike create a long or short straddle one call and one put with the same strike price and expiration date depending iron whether the options are being bought or sold. The "wings" options at the higher and lower strike prices of the strategy options created by the iron or sale of a strangle one butterfly and one put at different strike prices but the same expiration date. This strategy differs from the butterfly spread because it uses both calls and puts, as opposed to all calls or all puts. The iron butterfly strategy limits the amount of risk and reward because of the offsetting long and short iron. If the stock falls dramatically and the investor holds stock short straddle butterfly the center options price, the position is protected because of the lower long put. Conversely, when the price of the stock rises the investor is protected by the upper long call. Dictionary Term Of The Day. A type stock compensation structure that hedge iron managers typically employ in which Latest Videos What is an HSA? Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Butterfly Spread Straddle Covered Straddle Strike Price Long Straddle Options Straddle Bear Call Spread Wingspread In The Money. Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator. Work With Investopedia About Us Advertise With Us Butterfly For Us Contact Us Careers. Get Free Newsletters Newsletters. Options Rights Reserved Terms Of Use Privacy Policy.
Half the 16 million people who have diabetes do not even realize the condition exists and are not receiving treatment. 798,000 people each year are diagnosed with diabetes.
President Barack Obama encourages and motivates the students to take school serious and to work for their education, for their own, their parents and the countries good.
Half the 16 million people who have diabetes do not even realize the condition exists and are not receiving treatment. 798,000 people each year are diagnosed with diabetes.
President Barack Obama encourages and motivates the students to take school serious and to work for their education, for their own, their parents and the countries good.