Test a Long Call Butterfly across possible paths

Market outlook Near one price

Three-strike call structure concentrates payoff at middle. Use the lab to see how the position responds before committing to a single forecast.

Scenario Lab

See how the position changes

Move the underlying, clock, and implied volatility independently. Values before expiration use a Black–Scholes estimate; expiration values use intrinsic payoff.

Buy call 1Strike Leg DTE Leg IV %Premium

Sell call 2Strike Leg DTE Leg IV %Premium

Buy call 3Strike Leg DTE Leg IV %Premium

The catalog’s default strikes and premiums are illustrative. No ticker lookup or market data is used.

Selected scenario—

Estimated P/L before expiration by underlying move and time remaining
Underlying	Today	30 days	14 days	7 days	Expiration
-15% —	—	—	—	—	—
-10% —	—	—	—	—	—
-5% —	—	—	—	—	—
0% —	—	—	—	—	—
+5% —	—	—	—	—	—
+10% —	—	—	—	—	—
+20% —	—	—	—	—	—

IV lens

At expiration

Intrinsic payoff checkpoints

Time value has gone to zero. IV no longer changes the result.

Profit or loss at expiration
Underlying	Move	P/L
—	-15%	—
—	-10%	—
—	-5%	—
—	0%	—
—	+5%	—
—	+10%	—
—	+20%	—

Model boundary: theoretical estimates use dividend-adjusted Black–Scholes for European exercise or a 100-step binomial estimate for American exercise. Fees, spreads, discrete dividend dates, early assignment behavior, and liquidity effects are excluded. Calculation, not advice.

Why this structure behaves this way

Long Call Butterfly is shaped by neutral delta and short vega exposure

Delta-neutral when centered on the current price. Near the body, theta works for you and IV contraction helps; short gamma near the middle strike means the position is most sensitive to pinning risk right at expiration.

This page uses the catalog’s illustrative default legs so you can compare direction, time, and volatility effects in one place. Edit the assumptions above to test a different starting point.