One of the things investors like about options trading is the flexibility it gives them. With options, traders can employ different strategies and tactics.

One such strategy is the butterfly spread. BayCrest Managing Director, Equity Derivatives David Boole says the butterfly strategy is "used more when there's a lot more volatility in the market." He adds that traders like them because "for a small amount of premium, you get exposure to a wide range."

Watch the video above to hear Boole explain butterfly trades that were made based on the iShares 20+ Year Treasury Bond ETF (TLT) and Nvidia (NVDA).

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Stephanie Mikulich.