What does butterfly spread mean?

butterfly spread meaning in Law Dictionary

three-legged choice scatter in which each knee has got the exact same termination date but different hit prices. For instance, a butterfly scatter in soybean telephone call choices might consist of one long call at a $5.50 hit price, two brief telephone calls at a $6.00 hit price, plus one long telephone call at a $6.50 attack price.

butterfly spread meaning in Business Dictionary

Options strategy that combines a bear spread and a bull scatter, involving four options and three exercise prices. It needs sale/purchase of two identical choices, and purchase/sale of just one choice with a greater exercise cost and another with a lowered workout price. All options utilized in this tactic must (1) be of the same type, (2) have the same main asset, and (3) have a similar expiration time.