An iron albatross that is typically established by selling a far out-of-the-money call option, buying an out-of-the-money call option, buying an out-of-the-money put option, and selling far out-of-the-money put option. From the perspective of a seasoned option trader, the reverse iron albatross is actually made up of an out-of-the-money bull call spread and an out-of-the-money bear put spread.

The maximum profit potential from a reverse iron albatross can be achieved if the underlying breaks out, by expiration, either above the sum of the long call strike and the net debit amount (both forming the upper breakeven point) or below the long put strike minus the net debit amount (i.e., the lower breakeven point). The maximum loss is limited to the net debit amount.

The breakeven range for a reverse iron albatross is narrower than that for other popular option strategies such as a straddle or strangle. However, it has a wider breakeven range in comparison with a reverse iron condor spread.

The reverse iron albatross allows investors to profit whether the underlying moves up or down.