STRATEGY EXPLAINER · 2:32
Short Put Butterfly Strategy Explainer Video
The Short Put Butterfly is a neutral strategy like the Long Put Butterfly but bullish on volatility. It is a limited profit, limited risk options strategy. There are 3 striking prices involved in a Short Put Butterfly and it can be constructed by writing one lower striking out-of-the-money put, buying two at-the-money puts and writing another higher striking in-the-money put, giving the options trader a net credit to put on the trade.
