This setup is a combination of a long call butterfly and a long put butterfly ... then you can engage in only one of these ...

Butterfly spreads use specific option combos to bet on stock volatility ... The total cost to set up this trade (remember to multiply everything by 100 shares per contract) is $2,417.

The iron butterfly is an advanced strategy that employs four option contracts at three different strikes. The trade is composed of two sold options -- one call and one put -- at the center strike ...