Iron Butterfly Gut Option Strategy ???

Discussion in 'Options' started by newesttrader1, Aug 17, 2003.

  1. newesttrader1

    newesttrader1

    Can any clever guy tell me the pay-off diagram for this strategy:

    long iron gut butterfly: +call -call -put +put,
    (strike1 lower than strike2 lower than strike2 lower than strike4)

    short iron gut butterfly: -call +call +put -put,
    (strike1 lower than strike2 lower than strike2 lower than strike4)

    TIA,

    Andrew
     
    #1     Aug 17, 2003
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  2. sle

    sle

    Will this work?

    ___/\____

    long iron gut butterfly: +call -call -put +put,
    (strike1 lower than strike2 lower than strike2 lower than strike4)


    ___ ____
    ......\/

    short iron gut butterfly: -call +call +put -put,
    (strike1 lower than strike2 lower than strike2 lower than strike4)
     
    #2     Aug 17, 2003
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