It's a type of Butterfly Spread where risk/reward profile is skewed in favor of the trader by which no losses occur or a slight credit is taken even if the underlying security goes down substantially. The strategy profits the most if the underlying price appreciates within the expected range.
It's a type of Butterfly Spread where risk/reward profile is skewed in favor of the trader by which no losses occur or a slight credit is taken even if the underlying security goes down substantially. The strategy profits the most if the underlying price appreciates within the expected range.