Butterfly spread

Butterfly Spread
Butterfly Spread definition :
Applies to derivative products.

butterfly spread
Complex options strategy that involves selling two calls and buying two calls on the same or different markets, with several maturity dates; one option has a higher exercise price, and the other a lower price.

butterfly spread
Stockholding & Investments
simultaneously buying and selling variety of options a complex option strategy based on simultaneously purchasing and selling calls at different exercise prices and maturity dates, ...

BUTTERFLY SPREAD - Applies to derivative products. Complex option strategy that involves buying a call ...
BUTTERFLY TRADE - Is the sale of two units of a futures contract and the purchase of two units of a fut...

Butterfly Spread
A three-legged spread in futures or options. In the option spread, the options have the same expiration date but differ in strike prices.

Butterfly spread - A spread consisting of three different options; either all calls or all puts; on the same underlying with the same expiration date.

butterfly spread An options spread that combines a long strangle with a short straddle.
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Butterfly Spread
An option strategy combining a bull and bear spread. Three strike prices are used. The lower two strike prices are used in the bull spread and the higher two strike prices are used in the bear spread.

See also: Butterfly Spread, Long, Short, Straddle, Strangle, Strike Price
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For example, let's say you are in a butterfly spread and the market trends up and hits your adjustment point. So what kind of adjustment do you make?

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See also: Derivatives, In the Money, Out of the Money, At the Money, Option Holder, Option Writer, Option Premium, Omega, Barrier Option, Trigger Option, Look Forward Option, Straddle, Strangle, Butterfly Spread, Binary Option, Combined Option ...

A nonparallel shift in the yield curve involving the height of the curve.
Butterfly spread ...

An options strategy, similar to a butterfly spread, involving four strike prices that has both limited risk and limited profit potential. A ...(Read more)
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See also bear spread ; bull spread ; butterfly spread ; calendar spread ; credit spread ; debit spread ; diagonal spread ; option ; price spread ; selling the spread ; vertical spread .

condor An options strategy similar to a butterfly spread. The only difference is that... conduit borrower An entity that assumes debt in order to provide a securities loan to another...

See also: Bear spread, Expense, Banks, Bills, Technical Analysis