Butterfly Spread
An option 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.

Investopedia Says:
This strategy has limited risk and limited profit.

Related Terms:
Bear Spread
Bull Spread
Debit Spread
Iron Condor
Multi-leg Options Order
Option

• Option Adjusted Spread (OAS)
• Option Adjusted Spread (OAS)
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