You are short the September 40-45-50 butterfly with the underlying at 45. You:
a) are long and want the market to rally.
No. You have two short options balanced out with two long options. It is a neutral position.
b) are short and want the market to fall.
c) are neutral and want the market to sit.
d) you are neutral but want the market to move in either direction.
a)
b)
c)
d)