Summary: Long call butterfly spread strategy for traders expecting minimal movement in asset prices.

From Barchart: 2025-05-15 07:00:00

The long call butterfly spread is a strategy used by traders who anticipate little movement in an asset’s price. It involves buying one call option, selling two call options at a higher strike price, and buying another call option at an even higher strike price. This strategy has limited profit potential and risk.

This options strategy is known as a defined-risk, limited-profit strategy, making it suitable for traders who expect minimal price movement in the underlying asset. The long call butterfly spread involves buying one call option, selling two call options at a higher strike price, and buying another call option at an even higher strike price.

Traders use the long call butterfly spread when they anticipate minimal price movement in an asset. This strategy involves buying one call option, selling two call options at a higher strike price, and buying another call option at an even higher strike price. It is a defined-risk, limited-profit options strategy.



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