iron-butterfly

Identify optimal Iron Butterfly trades using IV conditions and Greeks analysis across liquid equity options.

Updated Aug 23, 2026

Search Tags:#greeks #straddle #iron-butterfly #wing-width #credit-spreads

Ready to run

npx skills add https://github.com/keith-mvs/ordinis --skill iron-butterfly

💬 Prompt for ChatGPT / Claude Chat▼

Please help me install this Agent Skill.
Skill: iron-butterfly
Source: https://github.com/keith-mvs/ordinis/tree/main/docs/knowledge-base/domains/options/strategy-implementations/iron-butterfly
Command: npx skills add https://github.com/keith-mvs/ordinis --skill iron-butterfly

SYSTEM DOCUMENTATION & REQUIREMENTS

💡 This Skill requires numpy, pandas, scipy, matplotlib, and includes scripts (resource) and references (resource) and assets (resource) components.

What problem does it solve?

This Skill covers high-credit neutral strategies by selling an at-the-money straddle and buying protective wings.

Core Features & Use Cases

ATM Straddle + Wings: Max credit with tight profit zone
Wing Width Analysis: Narrow/standard/wide configurations
Greeks & Dividends: Delta, gamma, theta, vega considerations

Quick Start

Example: "Configure an iron butterfly with ATM body and symmetrical wings."

Frequently Asked Questions about iron-butterfly

High-intent search queries and answers about installing and using this skill.

FAQPage Schema

How do I identify optimal iron butterfly trades based on price targets and IV conditions?▼

Iron butterfly trades identify optimal entry points by analyzing at-the-money straddles paired with protective wings, evaluating implied volatility levels and price targets to maximize credit while managing risk across delta, gamma, theta, and vega exposures.

What's the best way to calculate net credit, max profit, and breakeven points for an iron butterfly strategy?▼

Net credit, max profit, max loss, and breakeven zones are computed by analyzing the ATM straddle body width, wing strike selection, and credit optimization across equity options, with systematic workflows for entry, adjustment, and exit decision guidance.

How do wing width configurations affect iron butterfly profitability and risk management?▼

Wing-width analysis—narrow, standard, or wide configurations—directly impacts profit zone tightness and maximum loss boundaries; wider wings reduce credit but increase probability of profit, while narrower wings concentrate credit with tighter risk parameters.

Can I use iron butterfly strategies with high-liquidity equity options and dividend-paying stocks?▼

Iron butterfly strategies apply across high-liquidity equity options with Greeks and dividend considerations; systematic workflows account for delta, gamma, theta, and vega impacts to optimize pinning opportunities and strike selection around ex-dividend dates.

What are the limitations of iron butterfly strategies in low-volatility or highly directional markets?▼

Iron butterfly effectiveness depends on stable implied volatility and price pinning near the ATM strike; in trending markets or extreme volatility, the tight profit zone and fixed wing strikes may result in max loss if price breaches breakevens, limiting recovery options.