An option strategy utilizing both bear and bull spreads and this option creates a neutral effect.
By using all four option contracts, under the same expiration but three different strike prices, an investor creates a range of prices to profit from. First, the investor sells two option contracts at the middle strike price. Then he/she purchases one option contract a lower strike price and the final option at a higher strike price, thus covering all highs/lows. Butterfly spreads can use both puts and calls. Risk is limited, so the only loss would be the initial investment.