What Is a Butterfly Spread? When markets are volatile, experienced investors may seek to profit by adopting a complex option strategy like butterfly spreads. By using these strategies, investors can ...

Options trading is the buying and selling of options contracts in the market, usually on a public exchange. Options are often the next level of security that new investors learn about following their ...

A “spread” is a position consisting of both long (purchased) and short (sold) options of the same type (i.e., put or call). The options may have different exercise prices and exercise dates. The basic ...