Short Butterfly Spread

Profile Version / Simplified Version / Comprehensive Version

Short Butterfly Spread Risk Graph
Learn How To Read This Chart

Short Butterfly Spread - Components

Sell To Open X number of In The Money Call Options. 2. Sell To Open X number of Out Of The Money Call Options. 3. Buy To Open 2X number of At The Money Call Options.

Sell ITM Call + Sell OTM Call + Buy 2 x ATM Call

Short Butterfly Spread - Expectation

Volatile

Short Butterfly Spread - Risk / Reward

Maximum Profit: Limited

Maximum Loss: Limited

Short Butterfly Spread - Breakeven Point

Lower Breakeven Point : Net Credit + Lower Strike Price

Upper Breakeven Point : Higher Strike Price - Net Credit

Trade Short Butterfly Spreads With Best Options Broker, OptionsXpress!

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