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Reverse Iron Butterfly Spread

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Reverse Iron Butterfly Spread Risk Graph
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Reverse Iron Butterfly Spread - Components


1. Sell To Open X number of Out Of The Money Call Options. 2. Buy To Open X number of At The Money Call Options. 3. Sell To Open X number of Out Of The Money Put Options. 4. Buy To Open X number of At The Money Put Options.

Sell OTM Call + Buy ATM Call + Buy ATM Put + Sell OTM Put



Reverse Iron Butterfly Spread - Expectation

Volatile



Reverse Iron Butterfly Spread - Risk / Reward

Maximum Profit: Limited

Maximum Loss: Limited



Reverse Iron Butterfly Spread - Breakeven Point

Upper Break Even Point = Long Call Strike + Debit

Lower Break Even = Long Put Strike - Debit



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