Butterfly Spread

No actual butterflies are harmed in the making of a butterfly spread.

A butterfly spread trade is basically a combo deal between a bull spread and a bear spread (the one time a bull and bear can make a butterfly). This spread involves buying four options with three different strike prices but similar expiration. The idea is that the market is volatile and this spread covers all your bases. It is relatively low risk but also comes with few chances to make bigger bucks. It's named after the idea that this strategy, like the butterfly, will "land soft" (you won't lose a ton or gain a ton).