The Long Put Butterfly is a strategy that must be devised when the investor is neutral on the market direction and expects volatility to be low in the market. This strategy is implemented by selling two "at-the-money put options"(middle strike price), buying one "out-of-the-money put option"(lower strike price), and buying one "in-the-money put option"(higher strike price). A Long Put Butterfly is similar to a Short Straddle, except here the investor’s losses are limited. The investor will benefit if the underlying asset remains at the middle strike at expiration.