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Iron Butterfly Option Calculator
Short ATM straddle + long OTM wings. Max profit if stock pins the body strike.
How this Iron Butterfly calculator works
This free Iron Butterfly profit calculator estimates profit and loss across stock prices and dates. Use live quotes and the option chain (via the local data proxy), then review max profit, max loss, breakevens, ROI on risk, probability of profit, and a date × price heatmap or numerical matrix.
- At expiration: intrinsic payoff for each option leg (and stock, if included).
- Before expiration: Black–Scholes theoretical value using each leg’s IV and DTE.
- Multi-expiry: near-term legs settle first; longer-dated legs keep remaining time value.
Typical legs for a Iron Butterfly
Default template legs (edit freely or replace from the option chain):
- Leg 1: buy put @ strike template 90
- Leg 2: sell put @ strike template 100
- Leg 3: sell call @ strike template 100
- Leg 4: buy call @ strike template 110
When traders use a Iron Butterfly
Market outlook: neutral. Use the calculator to stress-test strikes and premiums before placing an order. Options involve substantial risk of loss and are not suitable for every investor.
Frequently asked questions
What is a Iron Butterfly options strategy?
Short ATM straddle + long OTM wings. Max profit if stock pins the body strike.
How do I calculate profit and loss for a Iron Butterfly?
Enter the underlying price, strikes, premiums, and contracts in the Iron Butterfly calculator. The tool shows max profit, max loss, breakeven points, and a P/L heatmap from now until expiration using Black–Scholes before expiry and intrinsic value at expiration.
Is the Iron Butterfly strategy neutral?
This strategy is generally considered neutral in market outlook. Always confirm risk, margin, and assignment rules with your broker before trading.
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