Butterfly Spread

Butterfly Spread

Definition of Butterfly Spread in Futures Trading

In this area, here is a meaning of Butterfly Spread: A three-legged option spread in which each leg has the same expiration date but different strike prices. For example, a butterfly spread in soybean call options might consist of one long call at a $5.50 strike price, two short calls at a $6.00 strike price, and one long call at a $6.50 strike price.





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