Which is better Iron Butterfly or iron condor?

As you can see from the payoff diagrams above, iron condors have a wider profit zone than the iron butterfly. However, the iron butterfly has a higher profit potential than the iron condor. Because the iron butterfly sells ATM options, it has higher vega exposure than the iron condor. What strategy is better?

What are Iron Condors and Iron Butterflies?

Iron condors and iron butterflies are options trading strategies that limit your losses and give you many ways to realize a profit. Traders can use these strategies to profit from markets that go up, down, or sideways. (Read our Advertiser Disclosure)

What is the difference between a condor and a butterfly?

The iron condor is sculpted using two vertical spreads, while the iron butterfly emerges from the marriage of a short straddle with a long option strangle. Both blends harmonize potential risks and rewards. Time Decay Capitalization: Theta, the ticking clock of options, is a boon for both these strategies.