Iron Fly

Setup 1 – Range Bound Market

1. Iron fly is a non directional strategy. So, first check whether the market is range-bound or
not.
2. If market is range bound then go for iron fly
3. If market is in strong momentum, then avoid iron fly.
4. For weekly trade check last weeks range of underlying, and for monthly, check last 3
weeks range of the underlying.
5. Now check premiums, there should be minimum 40% premium in straddle with respect
to range in straddle.