A butterfly option spread is a risk-neutral options strategy that combines bull and bear call spreads in order to earn a profit when the price of the underlying stock doesn't move much. The profit ...

The Iron Butterfly is used when an options trader expects the underlying security to trade within a specific price range. The Iron Butterfly can be created using both Calls and Puts, ...

Market volatility remains subdued since April as measured by the CBOE Volatility (VIX) Index. VIX is a real-time index that ...

An iron butterfly is an options trading strategy that revolves around two calls and two puts. Traders buy options within the same stock and expiration date, but not all of these contracts have the ...

With chipmaker Taiwan Semiconductor looking very strong, investors might consider a "target strike butterfly" on TSMC stock.

The short put butterfly spread is an options trading strategy initiated by selling an out-of-the-money put option with a lower strike price, while simultaneously buying two at-the-money puts, ...

As of this writing, Apple stock trades for about $173 per share, so I might set up a butterfly spread like this (option prices as of April 15, 2024 for contracts expiring May 17, 2024): Buy one ...

Using Options to Profit During Stock Consolidations. With stock options, you can capitalize on rangebound stocks during consolidations by using a call butterfly strategy.

The iron butterfly options trading strategy aims to profit investors during periods of low volatility. Also known as the “short iron butterfly” or the “iron fly,” the strategy makes its ...

For example, if I buy a 150-145-143 broken wing butterfly and pay around a dollar, nothing gained if the stock is over $150 at expiration—all options expire worthless.

Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. Among the more creative names for option strategies is the iron butterfly. In a basic butterfly, you combine ...

The short put butterfly spread is an options trading strategy initiated by selling an out-of-the-money put option with a lower strike price, while simultaneously buying two at-the-money puts, ...