Long Call Butterfly
A butterfly (fly) consists of options at three equally spaced exercise prices, where all options are of the same type (all put or all call) and expire at the same time. In a long fly, the outside strikes are purchased and the inside strike is sold. The ratio of a fly is always 1 x 2 x 1. The long call fly strategy combines a bull call spread with a bear call spread, where the inside strike is sold twice between evenly spaced outside strikes.
Fri, Oct 23rd, 2020