In Wednesday's edition of Advanced Options, we analyzed the long call butterfly spread, which allows accurate option veterans to profit from a stock's apathetic price action. In today's column, we're going to make this three-tiered strategy even more tangible by analyzing a theoretical long call butterfly on agricultural equipment issue AGCO Corporation (NASDAQ: AGCO).

Before we dissect our hypothetical strategy, let's quickly recap what we know about the long call butterfly. The option play should be utilized by investors expecting little volatility from a stock in the short-to-intermediate term. More specifically, the strategist should have a specific price target in mind, as precision is needed to reap a profit.

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