Strategy

Butterfly Spread

By Ryan Silk & Lawrence Polatchek · Reviewed April 2026 · Options Trading Glossary

Three-strike neutral strategy

What is Butterfly Spread?

Butterfly Spread A neutral strategy using three strikes: buy 1 low, sell 2 middle, buy 1 high. Max profit at middle strike. Low cost, defined risk, high reward if price pins at center.

Complete Definition

A neutral strategy using three strikes: buy 1 low, sell 2 middle, buy 1 high. Max profit at middle strike. Low cost, defined risk, high reward if price pins at center.

Related Terms

Iron Butterfly Condor Neutral Strategy

Written by

ApexVol Research Team

Quantitative options research

All calculations use live ORATS institutional data — the same source used by professional volatility desks.

Technical reviewer

Ryan Silk, ApexVol Founder

Reviewed for technical accuracy

10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.

This guide is updated as market conditions and ORATS data change. Last revised 2026-05-12. How we research →

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Butterfly Spread All Terms Buy to Close (BTC)

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