# Butterfly Spread

*Derivatives & Options — Finicade finance glossary*

An options combination that profits if the price lands near a target and stays there — cheap to put on, with limited risk and reward. A bet on calm, pinned right where you expect.

**Also known as:** butterfly

**Related terms:** [Straddle](https://finicade.com/glossary/straddle), [Option Strategies](https://finicade.com/glossary/option-strategies), [Volatility Smile](https://finicade.com/glossary/volatility-smile-skew)

**Taught in:** Hull Street — Trading Strategies with Options

Source: https://finicade.com/glossary/butterfly-spread