Saturday, November 03, 2007 6:19:26 PM
Options Strategy: Butterfly Options Spread
Butterfly Spread Defined: An options trading strategy combining a bull and bear spread. It 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. A very large profit is made if the stock is at or very near the middle strike price on expiration day.
http://www.daytradeteam.com/dtt/butterfly-options-trading.asp
Butterfly Spread Defined: An options trading strategy combining a bull and bear spread. It 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. A very large profit is made if the stock is at or very near the middle strike price on expiration day.
http://www.daytradeteam.com/dtt/butterfly-options-trading.asp
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