Iron Butterfly

An iron butterfly is an advanced trading strategy that is created by buying a lower strike out-of-the-money put, selling a middle strike at-the-money put, selling a middle strike at-the-money call, and buying a higher strike out-of-the-money call.

Similar to an Iron Condor, the Iron Butterfly is a limited risk strategy that has a higher probability of a small profit with an underlying asset with low volatility.