Butterfly Spread Strategy: A Smart Options Trading Approach for Limited Risk and Reward
The Butterfly Spread is a choice for people who want to keep risks low and are okay with making a limited amount of money. This strategy uses a different option contracts to create a situation where the trader makes money if the underlying asset is close, to a certain price when the options expire. The Butterfly Spread is really helpful when the market is not moving much and traders do not think there will be any changes.