Educational only, not financial advice or a strategy recommendation. Options strategies carry risk, including of substantial loss. 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.

Where the dealer map comes in

A fly is a bet on the pin, and the pin is a dealer-positioning phenomenon: price gets held near the strike carrying the heaviest open interest because hedging flows keep pulling it back. That is what a dealer map shows you — the call and put walls, the strike with the most gamma sitting on it, and how far price has drifted from it. Premium selling carries its own risks, and how you choose to express a pin view is your decision at your own broker. Related: the butterfly spread explainer.