Send us Feedback

Options - Butterfly Spreads

RECENT NEWS
Fly high with butterfly spread
The Hindu Business Line  Sep 29  Comment 
Butterfly spread is one of the most important spread trading strategy used by traders. It involves position in options with three different strike prices. It can be created by bu...
Nifty lackluster, form Butterfly Spread; market may rebound: Sharekhan
The Economic Times  Sep 6  Comment 
Till the time the index is holding levels above 5,200, we think that market may rebound, says Nandish Patel.
PICTURES: IAI's unmanned 'Butterfly' spreads its wings
Flightglobal  Mar 20  Comment 
Israel Aerospace Industries has unveiled the prototype of its "Butterfly" unmanned air system ...
Butterfly spread calls for Target rally
FX Street  Aug 17  Comment 
TGT - Target Corp. – Post-earnings options trading on Target this morning appears to be littered... For more information, read our latest forex news and reports.
Butterfly Spreads Wings in Prudential Call Options
FX Street  Apr 21  Comment 
PRU - Prudential Financial, Inc. – Long-dated call options on Prudential Financial are active today... For more information, read our latest forex news and reports.
Bearish options player fashions put butterfly spread on Retail SPDR ETF
FX Street  Apr 6  Comment 
XRT - SPDR S&P Retail ETF – A large bearish put butterfly spread on the retail ETF this... For more information, read our latest forex news and reports.
Put butterfly spread appears on Financial Select Sector SPDR ETF
FX Street  Sep 20  Comment 
XLF – Financial Select Sector SPDR ETF – The familiar shadow of a put butterfly spread appeared on... For more information, read our latest forex news and reports.
Put butterfly spread on Financials ETF points to persisting pessimism
FX Street  May 11  Comment 
XLF - Financial Select Sector SPDR ETF – Investors heavily favored put options over call options on... For more information, read our latest forex news and reports.




RELATED WIKI ARTICLES

Related Articles

more ▼WIKI ANALYSIS
This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition.
 

Butterfly Spreads

A complex neutral options strategy which involves selling at the money options and buying out of the money options. Profit is made when the higher premium of the at the money options offset the lower premium of the out of the money options resulting in a profit during expiration.

See Also

Retrieved from "http://www.wikinvest.com/wiki/Options_-_Butterfly_Spreads"
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki