An options butterfly spread is a neutral options trading strategy that involves combining both a bull spread and a bear spread in order to profit from a stock or other underlying asset trading within a specific range. The strategy involves buying and selling three different options with the same expiration date, but at different strike prices. The goal is to profit from the difference in the price of the options as the underlying asset moves within a certain range. It is considered to be a limited risk and limited profit strategy.
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