A Butterfly Spread strategy is a complex options strategy involving the purchase and sale of options with three different strike prices, all with the same expiration date. This strategy is used when an investor believes that the underlying asset’s price will stay within a specific price range over a certain period.

In more detail, here is how it works:

- An investor buys one in-the-money option (an option with a strike price lower than the current market price of the underlying asset).
- At the same time, the investor sells two at-the-money options (options with a strike price equal to the current market price of the underlying asset).
- The investor also buys one out-of-the-money option (an option with a strike price higher than the current market price of the underlying asset).

The purpose of this strategy is to profit from low volatility. The maximum profit occurs if the underlying asset’s price equals the strike price of the options sold at expiration (middle strike price). However, potential losses are also limited if the underlying asset’s price moves significantly in either direction.