Market Measures

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Managing Iron Flies

Market Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Today, we compare the performance of Iron Flies and Iron Condors.

An Iron Fly is a more aggressive and volatile strategy compared to the Iron Condor. The Iron Fly sells at-the-money (ATM) options, so the buying power reduction (BPR) is much smaller than the BPR of an Iron Condor.

However, the study shows that the Iron Fly has a low win rate when we hold to expiration. But when managing at 21 DTE, the Iron Fly becomes a high probability trade.

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