Not financial advice. Options involve risk and are not suitable for all investors. Data is delayed up to 15 minutes.
Broken Wing Butterfly Calculator
Butterflies & RatiosneutralDefined Risk
Buy one option, sell two middle options, and buy a farther wing to skew risk and reward.
What Is a Broken Wing Butterfly?
Buy one option, sell two middle options, and buy a farther wing to skew risk and reward. This strategy has a neutral outlook and defined risk.
Setup
BUY1x ATM CALL
SELL2x OTM1 CALL
BUY1x OTM3 CALL
Max Profit
Middle strike value less net debit, or plus net credit
Max Loss
Wider wing width - narrower wing width - net credit, or net debit paid
Breakeven
Depends on wing widths and net debit or credit