Investments & Financial Planning
My broker wants me to consider a Butterfly spread strategy , what is it ?
Butterfly spread strategy applies to derivative products. It is a complicated option strategy that involves selling 2 calls and buying 2 calls on the same or different markets, with several maturity dates. One of the options has a higher exercise price and the other has a lower exercise price than the other 2 options. The payoff diagram resembles the shape of a butterfly.
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