Iron Condor vs Iron Butterfly

An Iron Condor separates its short put and call strikes. An Iron Butterfly places both shorts at the center strike. Both use protective wings, but the location of the short options changes the profit zone and the premium collected.

What Are You Choosing Between?

A trader expecting a range may compare the Condor’s flat maximum-profit zone with the butterfly’s larger central peak. Use the same outer strikes to see that tradeoff clearly, then compare maximum dollar loss. Equal contract counts do not guarantee equal risk.

The Main Differences

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Results for the example positions below, before costs
Compare	Iron Condor	Iron Butterfly
Construction	Sell a put spread and call spread with separated short strikes.	Sell the center call and put, with protective outer wings.
Example entry	$200 net credit	$600 net credit
Maximum profit	$200	$600
Maximum loss	$300	$400
Breakeven price	$93; $107	$94; $106

A Practical Example

Both examples buy the $90 put and $110 call. The Condor sells the $95 put and $105 call; the butterfly sells the $100 put and call. The Condor collects $200 and risks $300. The butterfly collects $600 and risks $400, reaching that larger profit only at $100 at expiration.

XYZ is at $100 when the option trades are entered. Premiums below are per share; each option contract covers 100 shares. Each column shows one complete position, not an equal-capital allocation. Prices are hypothetical and exclude commissions, taxes, dividends, financing costs and early-assignment cashflows.

Exact quantities, strikes, premiums and days to expiration
Position	Example legs
Iron Condor	Buy 1 $90 put, 30 days, at $2.50 Sell 1 $95 put, 30 days, at $3 Sell 1 $105 call, 30 days, at $3 Buy 1 $110 call, 30 days, at $1.50
Iron Butterfly	Buy 1 $90 put, 30 days, at $2.50 Sell 1 $100 put, 30 days, at $5 Sell 1 $100 call, 30 days, at $5 Buy 1 $110 call, 30 days, at $1.50

Comparing the Expiration Payoffs

Iron Condor vs Iron Butterfly — expiration payoff comparison — Profit or loss at the common 30-day expiration, including the stated entry amounts. Lines overlap when the example payoffs match. The displayed price window does not cap an unlimited loss or gain.

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Expiration profit / loss in dollars
XYZ price	Iron Condor	Iron Butterfly
$80	−$300	−$400
$95	$200	$100
$100	$200	$600
$105	$200	$100
$120	−$300	−$400

What to Watch For

A larger credit does not make the butterfly a superior income trade. Small moves around the center change its expiration profit quickly. Also check naming conventions: this article means the credit Iron Butterfly, not the reverse, debit version.

Before expiration, time value and implied volatility can change a position’s market value. Short options also create exercise and assignment obligations. Review the full strategy guides for position management and settlement details.

Explore the Strategies

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