Using Iron Butterflies as a Strategy

iron butterflies are some of the most popular strategies you can trade. They take advantage of a lot of different things that traders like to do, selling premium, collecting a credit and having risked to fine characteristics them up as high probability trades. Time decay is going to work in your favor for iron butterflies because youare a net option seller. The outside strikes of your iron butterfly are going to decay in value, and they are long contracts, so that works against you for those positions.