The Butterfly
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.
The information contained on this website is for general informational purposes only and does not constitute financial or investment advice. The content is not intended to be a substitute for professional financial advice. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. Before making any investment decisions, you should always seek the advice of a professional financial advisor. Investing always involves some level of risk, and the value of your investments can fluctuate. Past performance is not indicative of future results. We will not be held responsible for any losses incurred as a result of following any information provided on this website. You should independently verify all information before relying on it. By accessing and using this website, you acknowledge and agree to these terms and conditions.