A strategy of combining bull and bearcredit spreads to minimize the risk with the short option of each spread on a single strike price. The profit is also limited due to the increased probability of the trade to profit. Put's or calls can be used for this strategy.
It's a type of Butterfly Spread where risk/reward profile is skewed in favor of the trader by which no losses occur or a slight credit is taken even if the underlying security goes down substantially. The strategy profits the most if the underlying price appreciates wit[click to read more]
A type of butterfly spread which is skewed to create reward in a single direction within a current range and has risk if the underlying moves in the correct direction, but beyond the expected move implied by current option prices. This is achieved by setting up a normal butterfly spread but then skipping, or moving further out of the money, the final protective put or call. [click to read more]