4th of July Special
The Butterfly Option –
A Non-Directional, Volatility Based
Option Trading Strategy
A butterfly option, otherwise known as a butterfly spread, is an option trading strategy. This strategy has limited risk, but also limited potential gain, and is based on a comparison between the expected future volatility, and the implied volatility of the underlying asset on which the options are based.
A butterfly spread combines a bull and bear spread and 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......
Best of Trading,
Director of Stock Options Made Easy
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Option Tip for your Success!
Legal Notices and Disclaimers
Options traders are not successful because they win.
Options traders win because they are successful.