OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Butterfly Spread'

« Back to the Options Trading Glossary

What is Butterfly Spread in Options Trading ?

Butterfly Spread
A strategy of combining bull and bear credit 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.




Share
>
Thanks for sharing. Connect with us on social media for additional content!

Send this to a friend

Hi, this may be interesting you: Butterfly Spread! This is the link: https://www.optionautomator.com/Options-Trading-Glossary/butterfly-spread/