The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to go answer the question, “What’s the difference between an iron butterfly and an iron condor?” Structurally, there's only one real difference between these strategies and I’m not going to get into the basics or to the pricing principles between them or how they interact in different markets. But as far as how they’re structured and how they’re built, iron butterflies are different than iron condors in that iron butterflies have the exact same short strike on both the call and put side and iron condors on the other hand, have different short strikes for calls and puts. For example, if we have a stock trading at $100, the iron butterfly strategy might sell the 100 strike call and the 100 strike put option and then buy options out on either end say at 105 on the call side and 95 on the put side. An iron condor on the other hand, might sell the 99 strike put and sell the 101 strike call option, so not