Second, similarity.
Butterfly option portfolio and saddle option portfolio are both options investment methods.
Third, different.
1, different observation objects
Butterfly option portfolio uses the price difference in different delivery months to hedge profits; The saddle option portfolio follows the same variety, the same maturity date and the same number of call options and put options.
2. Different trading operations
Butterfly option portfolio is a neutral strategy portfolio, that is, there is no long-short bias, but the fluctuation of trading stock index.
Saddle option is a trading operation of call option and put option.
3. Choose a different direction.
Butterfly option portfolio consists of two opposite intertemporal arbitrages and a monthly contract with intermediate delivery.
The saddle option portfolio consists of a call option and a put option with the same variety, the same maturity date and the same exercise price, and the buying and selling directions of the two options are the same.
Baidu Encyclopedia-Butterfly Options
Baidu Encyclopedia-Saddle Option