Strategy - SHORT BUTTERFLY (details below)

• bullish
• bearish
• neutral
• volatile
  • expect prices to be very volatile
  • expect prices to be volatile
  • moderately expect prices to be volatile

Strategy Implementation
Call option is sold with strike b, two call options are bought with strike a and a call option is sold with strike c.[A similar position can be created with puts].

Upside Potential
Limited to initial credit received.

Downside Risk
Limited to the difference between the lower and middle strikes minus the initial spread credit.

Margin
Off-set may be available.

Comment
May be difficult to execute this strategy quickly.