On my long outer wings, what if I bought longer expiration rather than the same term as the short straddle in the middle? Any savings on the losing end?
Very interesting, indeed. I did similar calculations for just 2-leg spreads. It's not easy to compute nor simulate, but is doable. So if you have the tools, then do some calculations (for simplicity by using model options, ie. using Black-Scholes) and you will get the answer. Sorry, I can't help, coz got no time... :-(
in a short iron fly, are you not short the wings? if you are buying the wings, it's probably more like a long fly, with diagonal expiry, something like a double diagonal with the short legs atm if I am correct.
cesfx, I think the consensus for "short" is if it gives for S=0 a negative PnL value, and for "long" a positive PnL value. And: many combinations can give the same PnL diagram, especially with such a 3 or 4 legged fly, eventhough the credit/debit can differ. See for example this one: https://optioncreator.com/st1ws8m If you interchange the type (Call, Put) of the latter 2 legs, then the result is the same, although debit/credit differs. Similar result if you interchange the strikes of the latter 2 legs.