Broken-Wing Butterfly (Calls)

bullish3 legs

Also known as: Skip-Strike Butterfly (calls)

Butterfly with an asymmetric lower wing (2w below, w above): risks only a small debit below, and CANNOT lose above the top strike. Max profit at the body.

Payoff shape at expiration (illustrative)

Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.

How it works

A call butterfly with asymmetric wings — the far wing sits wider, which converts part of the structure into a credit. Done right, one entire side of the trade has NO risk: if the stock moves that way, you keep the credit.

When to use it

When you want a butterfly's targeted payoff but with a cushion — the credit means being wrong in one direction still pays you.

What can go wrong

Risk concentrates on the wide-wing side, and it exceeds a symmetric butterfly's. The Lab shows exactly where the no-risk side sits — our scanner even hunts for these setups nightly.

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Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.