butterfly-spread

The calendar spread is a neutral strategy: it profits if the stock remains range-bound. To create a calendar spread with calls, we write a call with a certain strike price (in my example, K = 20) and buy a call with the same exercise price but a LONGER maturity (in my example, we buy a call with...

Just wanted to double check something. In the curriculum for GARP, Butterfly Spread is described with long two calls and write two calls between or the same thing with puts. However, isn't it more logical and easier to imagine it simply as a short straddle with both sides covered with a long...

Hi David. Just wondering: why would an investor choose a butterfly spread over a straddle write if the expectation is that the stock price movement would be minimal? Purely risk considerations? And why would the reverse happen, i.e. an investor chooses a straddle write over a butterfly spread?