17Jan

Could you please explain the option strategy known as the Iron Butterfly strategy?

By , January 17th, 2012 | Featured, Market News | 0 Comments

QUESTION:

Could you please explain the option strategy known as the Iron Butterfly strategy?

ANSWER:
The Iron Butterfly is an advanced option strategy that has four option positions and three different strike prices. Anytime you see the word “iron” in the name of an option strategy, it means this particular strategy utilizes both calls and puts. To learn more about the Iron Butterfly strategy, view this week’s segment of “Ask the Institute.

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