Trading Iron Butterfly Strategies - Exiting Iron Butterfly Trading Strategies

Time decay is a net positive impact on your position, all else being equal. You exit the contracts of your iron butterfly for a cost that is less than the credit you received to enter the position. If we were able to buy back the iron butterfly and all the legs for a net cost of 80 dollars, that means that we would have made a 100 dollar profit on our iron butterfly position. That's actually the beauty of trading options, i think, is that you don't always have to buy something at a low price and the try to sell it at a high price.