Markets move in three types of trends; up, down, and sideways trends. Up and down trends are typically easier to trade, but how can you make money in a sideways trend? The Long Call Butterfly option spread profits from a market that goes "nowhere" fast. The Long Call Butterfly is a multi-call strike, limited risk, limited profit potential advanced option strategy that looks to take advantage of a drop in volatility, time decay, and little to no price movement in the underlying security.

The Long Call Butterfly is a combination of a bull call debit spread and a bear call credit spread where two short calls are sold at the same strike. One long call is purchased above the strike of the short calls, and one long call is purchased below the short calls strike with all legs having the same expiration date. With this strategy, your risk is limited to premium paid while your reward is limited to the difference between the higher strikes and your premium paid. The strategy profits during low volatility, sideways markets.

Join John Rowland, Barchart's Head of Trading Education, as he walks you through the mechanics of the Long Call Butterfly strategy. John demonstrates how to use Barchart's Long Call Butterfly options screener and provides insights into which candidates could have a greater probability of success. He will also look at chart analysis for discovering proper strike selection.

In the webinar you will learn about:

• The impact time decay and volatility have on the strategy
• The cost-benefit analysis of strike selection and chart analysis
• The risks associated with the strategy
• Exit strategies