In finance, a butterfly (or simply fly) is a limited risk, non-directional options strategy that is designed to have a high probability of earning a limited profit when the future volatility of the underlying asset is expected to be lower (when long the butterfly) or higher (when short the butterfly) than that asset's current implied volatility. == Long butterfly == A long butterfly position will make profit if the future volatility is lower than the implied volatility.
In finance, a butterfly (or simply fly) is a limited risk, non-directional options strategy that is designed to have a high probability of earning a limited profit when the future volatility of the underlying asset is expected to be lower (when long the butterfly) or higher (when short the butterfly) than that asset's current implied volatility. == Long butterfly == A long butterfly position will make profit if the future volatility is lower than the implied volatility.
Source: Wikipedia "Butterfly (options)" · CC BY-SA 4.0
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