A complex and neutral option trading strategy which constitutes a bullish view on volatility. This limited-profit, limited-risk strategy can be constructed using call options or put options. Using calls (i.e., a short call butterfly), the short butterfly involves selling an in-the-money call option, buying two at-the-money call options, and selling an out-of-the-money call option.

A short butterfly, constructed using puts (i.e., a short put butterfly), involves selling an in-the-money put option, buying two at-the-money put options, and selling an out-of-the-money put option.