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.