Christmas Tree Butterfly with Puts
In the example above, Buy 1 Put strike 110 Sell 3 Puts strike 100 Buy 2 Puts strike 95 All puts have the same expiration date, and the four strike prices are equidistant. 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:...