Butterfly spread definitions

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Butterfly spread

Butterfly spread logo #21012Applies to derivative products. Complex option strategy that involves buying a call option with a relatively low strike price; buying a call option with a relatively high strike price; and selling two call options with an intermediate strike price. Essentially, this is a bear call spread stacked on top of a bull call spread. One can also do this wi...
Found on http://www.duke.edu/~charvey/Classes/wpg/bfglosb.htm

Butterfly Spread

Butterfly Spread logo #22402Applies to derivative products. Complex option strategy that involves selling two calls and buying t
Found on http://www.encyclo.co.uk/local/22402

Butterfly spread

Butterfly spread logo #20180(i) A futures butterfly spread is a spread trade in which multiple futures months are traded simultaneously at a differential. The trade basically consists of 2 futures spread transactions with either 3 or 4 different futures months at one differential.
Found on http://www.exchange-handbook.co.uk/index.cfm?section=glossary&first_letter=

Butterfly spread

Butterfly spread logo #22565An option strategy combining two option spreads whereby two options are bought (or sold) at the same strike price and one option is sold (or bought) at each of an equidistant higher and lower strike price, all for the same expiration. It is a limited-profit, limited-risk options strategy.
Found on http://www.metalbulletin.com/Glossary.html
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