What is the max profit of an inverse iron butterfly?

Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.

What is the max loss of an inverse iron butterfly?

Limited: there is a floor under what it can lose. The calculator gives the figure for your strikes and expiration.

How do I calculate an inverse iron butterfly's profit and loss?

Open the inverse iron butterfly in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.

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Inverse iron butterfly calculator

Wants a move. Long the ATM straddle and sell the wings — a debit iron fly.

Open in the calculator All strategies

OutlookBig move either way

Max profitLimited

Max lossLimited

LevelIntermediate

What is an inverse iron butterfly?

The inverse iron butterfly is long gamma at A. You need a sizable move in either direction. Max loss is near A; profit is capped by the short wings.

Legs

Buy a call and put at A
Sell a lower put and higher call

Payoff at expiration, sketched. The live example below has the real prices.

Live example on SPY

Net debit$198.50

Max loss$198.50

Max profit$1.50

Chance of profitLocked: ProUpgrade

BreakevensBelow $754.02 or above $757.98At expiration

754P−112/18 · $15.82
756P+112/18 · $16.54
756C+112/18 · $19.20
758C−112/18 · $17.93

SPY · Oct 30, 2026, 3:59 PM ET

With SPY at 755.53, on the Dec 18 expiration (49 days out): sell 1 754 put, buy 1 756 put, buy 1 756 call, and sell 1 758 call. Net debit $198.50. Max profit $1.50; max loss $198.50. Breakevens at expiration: Below $754.02 or above $757.98.

Open this inverse iron butterfly in the calculator to move the strikes, change the date and implied volatility, and read profit and loss by price and date.

Questions

What is an inverse iron butterfly?: The inverse iron butterfly is long gamma at A. You need a sizable move in either direction. Max loss is near A; profit is capped by the short wings.
When does an inverse iron butterfly make money?: Wants a move. Long the ATM straddle and sell the wings — a debit iron fly.
What is the max profit of an inverse iron butterfly?: Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.
What is the max loss of an inverse iron butterfly?: Limited: there is a floor under what it can lose. The calculator gives the figure for your strikes and expiration.
How do I calculate an inverse iron butterfly's profit and loss?: Open the inverse iron butterfly in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.