A combination in options trading is a strategy involving different calls and puts on the same asset. Learn how these ...

The iron butterfly is an advanced strategy that employs four option contracts at three different strikes. The trade is composed of two sold options -- one call and one put -- at the center strike, ...

Options trading isn’t only for investors with higher risk tolerances. Iron condors and iron butterflies are lower-risk strategies that limit your losses and give you many ways to realize a profit.

Here's the basic setup of an iron butterfly, along with how to calculate the position's maximum gain, maximum loss, and breakeven point. There are plenty of ways to profit on a stock's movement, ...