Long Iron Burterfly

• When? - When we expect the market will trending but the direction is not confirmed. Slightly reverse after trending moment.
• Strategy? - Buy a Call option and Put option of the same strike. Short lower strike Put Option and short higher Strike Call Option.
• Advantages? - Helps to reduce losses instead of unlimited Profit in 'Long Straddle'.
• Disadvantages? - Loss when the market is stuck.
• Max Profit? - Leg difference - Net premium
• Max Loss? - Net premium
• Break-even point? - Lower = Lower PE Strike + (PE Leg Diff. + Net Prem.); Upper = Higher CE Strike - (CE Leg Diff. + Net Prem.)