Long Butterfly Options Strategy (Best Guide w/ Examples)

⚡ Free options strategy calculators & visualizers: https://projectoption.com/calculators ☑ Free 160+ page Options Trading for Beginners PDF and bonus content: https://projectoption.com/free-guide ✅ Sign up with tastytrade: https://geni.us/tastytrade The long butterfly spread (buying a butterfly) consists of purchasing a call (put) spread, while simultaneously selling a call (put) spread with the same short strike price. All options are in the same expiration cycle, and both spreads should have the same strike width for standard long butterfly spreads. Long butterfly spreads profit from time decay or decreases in implied volatility when the stock price is near the short strike. In this video, you'll learn: 1. How to construct call butterfly spreads 2. How to construct put butterfly spreads 3. What the expiration risk profile graph looks like for long butterfly spreads, as well as in-depth explanations as to why profits or losses occur at various stock prices. 4. How do long butterfly spreads perform when the stock price changes? Additionally, you'll see performance visualizations for three real long call butterfly trades so that you can understand how the strategy performs in different scenarios. ==== FAVORITE OPTIONS TRADING BOOKS ==== How to Price & Trade Options: https://amzn.to/2FqsPmn Option Volatility and Pricing: https://amzn.to/2SU6f8K tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.