Glossary of Option Terms: Butterfly SpreadButterfly Spread Definition: A strategy with limited risk and limited profit that combines a bull and bear spread. Using three strike prices, the lower two strike prices are used in the bull spread, and the higher strike price in the bear spread. Both puts and calls can be used. Related Terms:
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Here It From Our Premium Members..."This is the first time I have had a position that paid handsomely while the market was experiencing spasms. I made 97% on my put position. That was sweet. " ~Dexter L., Jonesboro, GA 
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