Broken-Wing Butterfly (Puts)

bearish3 legs

Also known as: Skip-Strike Butterfly (puts)

Bearish mirror: asymmetric upper wing (2w above, w below) — risks only a small debit above, and CANNOT lose below the bottom strike.

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

The put-side broken wing: asymmetric put butterfly, often entered for a credit, with the risk pushed to one side.

When to use it

A downside target with upside forgiveness — if the stock rallies instead, the credit is yours.

What can go wrong

The widened wing carries the concentrated risk; know the width before entry.

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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.