how to trade buttlefly? what is the strategy? any factors can affect the spread?

QuoteOriginally posted by: mapleleafshow to trade buttlefly? what is the strategy? any factors can affect the spread?Weird... I thought something similar had already been asked a few times...ButterflyTradesButterflyTradeButterflyTradeAlready writte before, but: 1. how to trade buttlefly? Buy three instruments. you go long on the body and short the wings or viceversa2. what is the strategy? You probably noticed an unusual bump in your curve (or a change of convexity) and you want to take advantage of the fact that you think the market will return to a more "natural" shape buy setting up your butterfly. (you can find this is described in any introductory book on trading).3. any factors can affect the spread? Yes, the market... What do you mean?gc