In an IRA, selling a Straddle tends to be very buying power intensive because the position must be cash-secured. When selling ain an IRA, we must also buy an OTM Call so that the position has defined risk, since theoretically the stock can go up forever and the position can lose an infinite amount of money.
Instead of selling a Straddle, we can sell an. An Iron Fly is a short Straddle along with a long OTM Call and a long OTM Put. Doing so, we will be able to gain a similar exposure to the underlying as a Straddle, but we will be using much less buying power. The downside of using an Iron Fly is that we collect a smaller credit, and have a lower winning percentage, but the Iron Fly also loses a smaller amount on average.
For more information on these strategies including optimal strike selection, tune into the segment!