Assets
Crypto Deposit
Fiat Deposit
Convert
Transfer
Withdraw
My vouchers
Fund history
Dashboard
Account Security
Identity verification
API Management
Transaction Report
Log out
Register
BTCC / Hashtag / butterfly options trade
#bitcoin #mortgage rates 2026 canada #crypto neurop geo vulgaris
Edit
Report post Feedback

What is a butterfly option spread?

Image source: Getty Images. A butterfly option spread is a risk-neutral options strategy that combines bull and bear call spreads in order to earn a profit when the price of the underlying stock doesn't move much. The profit potential is rather limited, but so is the risk, which makes this a popular strategy for traders with a neutral outlook.

How many options does the Iron Butterfly trade have?

The Iron Butterfly trade is created with four options consisting of two call options and two put options. These calls and puts are spread out over three strike prices, all with the same expiration date.

Do butterfly spreads make a profit?

Butterfly spreads will profit if the underlying stock does not move much, if at all, throughout the duration of the trade. Butterfly spreads use four options contracts with the same expiration, but with three different strike prices. The higher and lower strike price options are at the same price difference from the at-the-money option.

What is a long butterfly trading strategy?

The converse strategy to the long butterfly is the short butterfly. Short butterfly spreads are used when high volatility is expected to push the stock price in either direction. The long butterfly trading strategy can also be created using puts instead of calls and is known as a long put butterfly.

Related Articles

The World's Leading Crypto Trading Platform

Get my welcome gifts

Exchange for a better future

Products
Services
Guides
About Us
Terms & Agreement
Customer Service

Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

The world’s longest-running cryptocurrency exchange since 2011 © 2011 - 2026 BTCC.com. All rights reserved