Christmas Tree Butterfly with Calls
In the above example: Buy 1 Call strike 95 Sell 3 Calls strike 105 Buy 2 Calls strike 110 The position is established for a net debit, and both the potential profit and maximum risk are limited. Strike prices are equidistant, and all options have the same expiration month. Risk is limited to the net debit paid: after the trade is paid for, no additional margin is required. Bullish...