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The short iron butterfly (selling an iron butterfly) is a neutral options trading strategy that consists of selling a call spread and put spread that share the same short strike price. Another way to interpret the strategy is the combination of a short straddle and long strangle.
In this video, you’ll learn:
1. What are the characteristics of the short iron butterfly strategy?
2. What does the expiration risk graph look like for a short iron butterfly position?
3. How do short iron butterflies perform when the stock price changes?
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