Yeah buy option buyers win too. They might not win often but when they do win, they win a windfall. They basically become the steamroller and win back all of the money that they've been losing to the option sellers. LOL
An Iron Butterfly is a hedged short straddle. You're selling the straddle and buying wings. You can place them far OTM if you like but it makes it much more affordable to put on the straddle as your BP is less and your risk of catastrophic blowout is much lower.
I'll bite..Are you Delta hedging with stock?? Are you setting certain levels of historical IV to enter the trade?? Have you spent 5 minutes backtesting ,I.e. Orats...
Much cheaper to just buy the wings and it is call iron butterflies. That is the reason some of us are looking at butterflies.
No need to delta hedge, as @caroy said, just hedge the wings. You can then print money and avoid the steamroller.
Blindly selling variance risk premium doesn't generate alpha, nor does buying it. There's more to optionality than just being a buyer or a seller, at least if you want to make something out of it.
https://www.elitetrader.com/et/threads/writing-options-for-a-living.53037/page-105 OP read the first 50 pages of this thread, it might save your next stimulus check.