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Short Gut Iron Butterfly


A gut iron butterfly which is established by selling one call at the lowest exercise price, buying one call and one put at the middle exercise price, and selling one put at the highest exercise price, with all the legs having the same expiration month. Also, the exercise price distance between all the legs should be the same.

In other words, this strategy is a combination of one long gut spread and one short gut spread. It could also be viewed as combining one put credit spread and one call credit spread.


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