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When you enter one of the following four positions: (i) long a butterfly call spread, (ii)...

When you enter one of the following four positions: (i) long a butterfly call spread, (ii) short a butterfly call spread, (iii) long a butterfly put spread, (iv) short a butterfly put spread, do you expect a credit or debit in your account?

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Answer #1

The following four positions:

(i) long a butterfly call spread, (ii) short a butterfly call spread, (iii) long a butterfly put spread, (iv) short a butterfly put spread

are "In-the-Money" positions, and we can expect Credit in our Account.

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