Butterfly Spread Option Trading Strategy

This trading strategy is a combination of the bull call spread and the bear call spread. According to OIC the the butterfly spread is "a strategy involving three strike prices that has both limited risk and limited profit potential. A long call butterfly is established by buying one call at the lowest strike price, writing two calls at the middle strike price, and buying one call at the highest strike price. A long put butterfly is established by buying one put at the highest strike price, writing two puts at the middle strike price, and buying one put at the lowest strike price."