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Strategy
The 0DTE Iron Butterfly (Iron Fly)
The iron fly is the iron condor’s tighter cousin — more premium, less room to be right. It’s a pure bet on the pin.
NoVo Options Trading · 2026
Educational only, not financial advice or a strategy recommendation. Options strategies carry risk, including of substantial loss. NoVo trades long single options; the strategies here are explained for understanding, not endorsed.
A 0DTE iron butterfly (iron fly) sells an at-the-money call and put with protective wings — collecting more premium than an iron condor but needing SPY to pin near a single strike. It’s a concentrated range bet.
How it works
You sell a call and put at the same at-the-money strike (the body) and buy protective wings above and below — a credit structure combining a call and put credit spread with a shared short strike. Max profit occurs if SPY closes right at that central strike; the tighter setup collects more premium than a condor but has a narrower profit zone.
The tradeoff and risk
More premium, less margin for error — SPY has to stay near the strike, so it’s essentially a bet on the end-of-day pin. Like the condor, it’s defined-risk but can lose multiples of the credit if SPY trends away from the body. On 0DTE, the pin is real (charm flows) but not guaranteed — a catalyst breaks it fast.
The iron fly bets on the pin: max profit if SPY sits on the strike, real loss if it wanders off. More premium, narrower target.
How NoVo differs
NoVo buys long options rather than selling flies. The iron fly is a legitimate premium-selling structure for range/pin days — understand it, but know it’s a different approach with its own risks. Related: the existing butterfly spread explainer.
More on this: The Iron Butterfly Options Strategy, Explained · The Broken-Wing Butterfly, Explained
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NoVo is a software tool for market analysis and for executing trades you initiate, not financial advice. This article is general education, not investment advice. Options trading involves substantial risk of loss, up to and including your entire capital. NoVo makes no guarantee of profit, win rate, or performance, and past results do not predict future outcomes. You are responsible for your own broker account, configuration, and trading decisions.