Butterfly Spread

An option strategy combining a bull and bear spread. It uses three strike prices. The lower two strike prices are used in the bull spread, and the higher strike price in the bear spread. Both puts and calls can be used.

Investopedia Says:
This strategy has limited risk and limited profit.

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An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them. Options Basics Tutorial
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Complex option strategy that involves selling two calls and buying two calls on the same or different markets, with several maturity dates. One of the options has a higher exercise price and the other has a lower exercise price than the other two options. An investor in a butterfly spread will profit if the underlying security makes no dramatic movements because the premium income will be collected when the options are sold.