The short butterfly is a neutral strategy like the long butterfly but bullish on volatility. It is a limited profit, limited risk options trading strategy. There are 3 striking prices involved in a short butterfly spread and it can be constructed using calls or puts. The trade involves selling one lower striking in-the-money call, buying two at-the-money calls and writing another higher striking out-of-the-money call, giving the trader a net credit to enter the position.
Download this template for a one-time fee of $15 and use with your MarketXLS subscription
Instant Delivery, One time price, exclusively made for MarketXLS users
This template uses MarketXLS functions to pull information. Without an active MarketXLS subscription it will not be useful. Read terms before purchasing
Read terms of purchase
See how MarketXLS helps you take advantage in the markets.