BUTTERFLY SPREAD
\bˈʌtəflˌa͡ɪ spɹˈɛd], \bˈʌtəflˌaɪ spɹˈɛd], \b_ˈʌ_t_ə_f_l_ˌaɪ s_p_ɹ_ˈɛ_d]\
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A three-legged option spread in which each leg has the same expiration date but different strike prices. For example, a butterfly spread in soybean call options might consist of one long call at a $5.50 strike price, two short calls at a $6.00 strike price, and one long call at a $6.50 strike price.
By Henry Campbell Black
Word of the day
Procollagen Proline Dioxygenase
- mixed-function oxygenase that catalyzes hydroxylation prolyl-glycyl-containing-peptide, usually in protocollagen, hydroxyprolylglycyl-peptide. The enzyme utilizes molecular oxygen with a concomitant oxidative decarboxylation of 2-oxoglutarate to succinate. EC 1.14.11.2.