What is Butterfly Spread?
Butterfly Spread — A limited-risk options strategy using three strikes that profits when the price stays near the middle strike at expiry.
In simple terms
A butterfly earns most if the stock pins the central strike.
Why Butterfly Spread matters when you invest
Understanding butterfly spread helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Butterfly Spread — frequently asked questions
What is Butterfly Spread?
A limited-risk options strategy using three strikes that profits when the price stays near the middle strike at expiry.
What does Butterfly Spread mean in the stock market?
A limited-risk options strategy using three strikes that profits when the price stays near the middle strike at expiry. A butterfly earns most if the stock pins the central strike.
Can you give an example of Butterfly Spread?
A butterfly earns most if the stock pins the central strike.
Put it into practice — open a free account.
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