A butterfly option spread is a risk-neutral options strategy that combines bull and bear call spreads in order to earn a profit when the price of the underlying stock doesn't move much.

What Is a Butterfly Spread? When markets are volatile, experienced investors may seek to profit by adopting a complex option strategy like butterfly spreads. By using these strategies, investors ...

Butterfly spreads use four option contracts with the same expiration but three different strike prices spread evenly apart using a 1:2:1 ratio. Butterfly spreads have caps on both potential ...

Options offer many strategies to make money that cannot be duplicated with conventional securities, and not all are high-risk ventures. For example, the iron butterfly strategy can generate steady ...

While you can buy or sell a single call or put to get started, other options trading strategies are more complex. The iron butterfly is an advanced options trading strategy that involves opening ...

A broken wing butterfly, and we'll use put options because the strikes will all stand below Tesla stock's latest price. This helps to reduce assignment risk. With a regular butterfly option trade ...

One options trading strategy that Shay uses is called the "butterfly spread." Watch the video above to learn more about it in the latest edition of Options 101. For more expert insight and the ...

A butterfly option spread is a risk-neutral options strategy that combines bull and bear call spreads in order to earn a profit when the price of the underlying stock doesn't move much.

A modified butterfly spread is an options strategy that adjusts a standard butterfly's strike prices or contract ratios to achieve a specific market outlook. Also called the 1-3-2 butterfly spread ...