Butterfly spread

butterfly spread investment & finance definition
An option strategy to sell several call options and at the same time buy several call options on the same secu-rity or futures contract.

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Butterfly Spread
It refers to the combined option strategy involving both bull and bear spread when their limited risk and limited profit.
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Butterfly spread
A three-legged option spread in which each leg has the same expiration date but different strike prices. For example, a butterfly spread in soybean call options might consist of one long call at a $5.

Butterfly Spread
(1) A futures butterfly spread is a spread trade in which multiple futures months are traded simultaneously at a differential.

The butterfly spread is an options spread that is geared toward incurring only a limited amount of risk, while having the potential to provide a small amount of profit from the strategy.

Butterfly Spread
An option strategy that has both limited risk and limited profit potential, constructed by combining a bull spread and a bear spread.

Butterfly Spread - An options strategy that limits both risk and returns by using four different options with different strike prices and the same expiration date.

Butterfly Spread - A futures position consisting of going long a near term futures contract and far term futures contract and simultaneously going short twice the amount of mid term futures contract. Read more about Butterfly Spread.

Butterfly Spread - The placing of two interdelivery futures spreads in opposite directions with the center delivery month common to both futures spreads.

Butterfly spread. A compound option strategy that consists of a combination of a bull spread and a bear spread, using either calls or puts.
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Butterfly Spread
An option strategy combining a bull and bear spread. It uses three strike prices. The lower two strike prices are used in the bull spread, and the higher strike price in the bear spread. Both puts and calls can be used.
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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
The sale (purchase) of two identical options, together with the purchase (sale) of one option with an immediately higher strike, and one option with an immediately lower strike.

Butterfly spread
Applies to derivative products. Complex option strategy that involves selling two calls and buying two calls on the same or different markets, with several maturity dates.

butterfly spread
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Butterfly spread
A strategy involving three equidistant strike prices that has both limited risk and limited profit potential.

Same as a butterfly spread.
Savings ratio:
The percentage of disposable income that is saved or used for debt repayment.

Butterfly Spread: A vertical spread consisting of a bull spread and a bear spread.

Sandwich Spread : Same as a butterfly spread.
Sangu : See Sangu (three gaps).
Sangu (three gaps) : A reversal candlestick signal applicable in either a s...
Sanpei : See Sanpei (three parallel bars).

A box spread in futures contracts is a spread from two consecutive butterfly spreads, summing to +1 -3 +3 -1 in consecutive, or at least equally spaced, contracts.

Sandwich Spread
Same as a butterfly spread.
Scalping
A strategy of buying at the bid and selling at the offer as soon as possible.

Conversely, traders use butterfly spreads when they believe that the price of a stock will remain relatively unchanged; this strategy profits off of time decay.

(ITM) call option, selling 2 At-the-Money (ATM) call options and buying another Out-of-the-Money (OTM) call option. This is actually a combination of 2 opposing vertical spread options, hence why the butterfly is also known as the butterfly spread.

Butterfly Spread A limited risk, limited reward strategy that involves 4 options (all calls or all puts) at 3 different strike prices.

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: Spread, Option, Options, Trading, Market