NVDA · Net-Credit · Non-Directional · Mon–Thu Daily

Neutral Daily · Mon–Thu 40 Contracts / Leg 4-Leg Structure 📈 Backtests
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Butterfly Cycles
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📋 Strategy Overview

An Iron Butterfly is a net-credit, defined-risk, non-directional options strategy. It is structurally similar to an Iron Condor, but both short strikes are placed at the money rather than away from ATM. This maximises premium collected but creates a much narrower profit zone — the position profits most when NVDA closes exactly at ATM.

Long putBUY TO OPENATM − 10 (e.g. $890)PAY
Short putSELL TO OPENATM (e.g. $900)COLLECT← both short strikes = ATM
Short callSELL TO OPENATM (e.g. $900)COLLECT
Long callBUY TO OPENATM + 10 (e.g. $910)PAY
Net Credit = (shortPut + shortCall) − (longPut + longCall)
ℹ️ Friday is skipped — no new positions are opened on Fridays. The script holds a position intraday only (open 9:40 ET, close 14:20 ET the same day).