Short Iron Butterfly Option Screener

[Neutral, Limited Risk, Limited Reward] The short iron butterfly spread is a low volatility option strategy where you expect the underlying security to remain range-bound. The short iron butterfly option strategy involves buying a put option, selling a put and call option at the same higher strike price around the price of the underlying security, and buying a call option at an equidistant higher strike price. 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). 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.