Long Butterfly Spread

Neutral Outlook & High Volatility Directional Assumption:  Neutral Setup: This spread is typically created using a ratio of 1-2-1 (1 ITM option, 2 ATM options, 1 OTM option).– Buy Call/Put (above short strike)– Sell 2 Calls/Puts– Buy Call/Put (below short strike) A long butterfly spread is a neutral position that’s Read more…