Strategy
Butterfly Spread
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.
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