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MULTI-LEG OPTIONS STRATEGY

Iron Butterfly Calculator

Calculate a centered four-leg credit position from live or manual option legs.

Live or manual option legs

Select a Schwab-backed contract or enter the strike and premium directly.

Long lower put · long 1×
Short ATM put · short 1×
Short ATM call · short 1×
Long upper call · long 1×

Payoff summary

Expiration payoff for the complete position.

Net credit
$600.00
Maximum profit
$600.00
Maximum loss
$400.00
Lower break-even
$94.00
Upper break-even
$106.00
Return on risk
150.00%

OPTIONS TRADE

MANUAL long put 90 1 / short put 100 4 / short call 100 4 / long call 110 1
Expiration
StrategyIRON BUTTERFLY
Contracts1 CONTRACT
Net credit
MAX PROFIT600
MAX LOSS400

Risk and methodology

Maximum loss uses the narrower wing assumption only when both wings are valid. Assignment and early exercise can alter realized results.

How this calculator works

An iron butterfly sells a same-strike call and put and buys protective wings, targeting a settlement near the center strike.

How to use it

Set the shared center strike, protective wings, and total credit. Use a range of possible settlements around the center; this structure is sensitive to moves away from the middle even when the credit looks large.

Formula, payoff, and assumptions

Maximum profit is net credit; maximum loss is wing width minus credit; break-evens sit one credit above and below the center.

The result assumes the short call and put use the same center strike and the protective wings form defined risk. Uneven wings can make the two loss sides different.

Practical example

A 100-centered iron fly sold for $6 with $10 wings has a $4 maximum loss per share before fees.

Reading this result

The center strike is the profit peak, while the two break-evens define the expiration cushion. This structure has less room for price movement than a comparable iron condor.

Common planning mistake

A high credit does not make an iron fly forgiving. It often reflects that the short options are concentrated at the current price, increasing sensitivity to a move.

Risk and limitations

The position is sensitive to a move away from the center strike and can face early-assignment risk.