Butterfly
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The sale (or purchase) of two identical options, together with the purchase (or sale) of one option with an immediately higher strike and one option with an immediately lower strike. | ||
Additional Comments:
All options must be the same type, have the same underlying, and have the same expiration date.
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Related Terms: | ||
Calendar Spread Applying to derivative products, a strategy in which there is a simultaneous purchase and sale of ... Long Straddle A long straddle is the simultaneous purchase of a put and a call on the same ... Vertical spread A spread in which one option is bought and one option is sold, where the options ... |
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