What Is a Butterfly Spread? When markets are volatile, experienced investors may seek to profit by adopting a complex option strategy like butterfly spreads. By using these strategies, investors can ...

A butterfly option spread is a risk-neutral options strategy that combines bull and bear call spreads in order to earn a profit when the price of the underlying stock doesn't move much. The profit ...

We independently evaluate all of our recommendations. If you click on links we provide, we may receive compensation. Learn what it takes to trade options Gordon Scott has been an active investor and ...

All week, we've been unpacking options strategies with cool names. Next up, the iron butterfly is a flexible options strategy that can be placed using call or put options, but each trade's risk and ...

Options trading is the buying and selling of options contracts in the market, usually on a public exchange. Options are often the next level of security that new investors learn about following their ...

Elvin Mirzayev, CFA, holds the CFO position at Norm OJSC. He has been a contributor to Investopedia since 2014. Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed ...

The popularity of stock options trading has soared in recent years, as retail stock traders have become more comfortable with managing their own investment portfolios and dipping their toes into the ...

Options trading involves derivatives that can quickly gain and lose value. Each options contract gives you the right but not the obligation to buy or sell 100 shares of an underlying asset at a ...

Options trading allows investors to invest less money and earn higher returns compared to buying and selling stocks Many investing platforms are available, each with their own pros and cons Robinhood ...

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our ...