Comparison Between the Butterfly and the Condor
With a Condor we have a greater target for our maximum return, spanning the two middle strike prices; whereas the Butterfly’s maximum return occurs only if the stock lands on the single middle strike price at expiration.
The Condor can incur a greater net debit because, typically, your first leg (with calls) or last leg (with puts) involves buying a Deep In the Money option, which is expensive.
Both strategies offer the investor “limited” maximum risk and limited maximum upside. Take note, however, that the maximum risk with these strategies is still 100% of what you spend on them.
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