Butterfly spread

Butterfly spread is a term in finance and commerce for an option strategy involving the simultaneous sale of and at the money straddle and purchase of an out of the money strangle. Potential gains will be seen if the underlying remains stable while the risk is limited should the underlying move dramatically. It’s also the simultaneous buying and selling of call options at different exercise prices or at different expiry dates.

Nearby pages
Buttress, Buxar District, Buxar Fort, Buxar Lok Sabha Constituency, Buxar Vidhan Sabha Constituency