Wide-body put butterfly
MixedSpace the wing strikes further from the middle strike.
Key difference: Higher net debit and a wider (but lower-probability) profit zone.
Best for: Traders who want more room around their price target.
Neutral strategy · Intermediate
Long Put Butterfly
Market outlook Near one price
Three-strike put structure concentrates payoff at middle.
Semi-ProLow risk30–45 days
Maximum profit—
Maximum loss—
Reward / risk—
Break-even price—
Position analyticsEarliest-expiry P&L
Valuation curveCurrent spot
Stress tableOutcomes at the valuation day
Each row reprices every live leg independently. Entry premiums stay fixed.
| Underlying price | Move | Profit / loss |
|---|
Current riskBlack–Scholes position Greeks · day 0
Dollar-scaled for each leg's quantity, multiplier, expiry, and IV. Theta is per day; vega and rho are per one percentage-point move.
Delta—
Gamma—
Theta / day—
Vega / IV pt—
Rho / rate pt—
| Leg | Delta | Theta/day | Vega |
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Strike configurations
Long Put Butterfly variations
Broken-wing put butterfly
MixedSet the wing strikes at unequal distances from the body, often eliminating the debit or creating a small credit.
Key difference: Removes risk on one side of the trade in exchange for asymmetric exposure on the other.
Adjustment: Shift the untested wing further out to skew risk away from one side.
Best for: Traders who want a directional lean built into the low-cost butterfly structure.
Common questions
Long Put Butterfly FAQ
Why does a long put butterfly cost so little?
Setup
The two short puts at the middle strike collect enough premium to largely offset the two long puts at the outer strikes, leaving a small net debit and correspondingly capped, but low-cost, defined risk.
What's the ideal outcome for this trade?
When to Use
The stock finishes exactly at the middle (short) strike at expiration, maximizing the value of the long upper-strike put while the short puts and lower long put expire with minimal value.
How does this compare to a long call butterfly?
Comparisons
Both target the stock pinning near a central strike with nearly identical risk/reward shapes; the choice between calls and puts usually comes down to relative pricing and skew between the two.
Why is precision so important with this strategy?
Greeks & Risk
Because the profit zone is narrow and centered tightly around the middle strike, even a modest move away from the target price can erode most of the potential profit.
Deep dive
Read the full Long Put Butterfly guide
Detailed explanations, management techniques, and real-world scenarios
Scenario Lab
Test price, time, and IV
Explore how this position changes before expiration
Quick reference
Strategy FAQ
Quick answers about when to use, capital needed, and key risks
Profit and loss
Options profit calculator
Compare max profit, max loss and break-even across common strategies
Custom calculator
Build a multi-leg options strategy
Combine calls, puts, stock, quantities and different expirations
Risk sensitivity
Calculate options Greeks
Inspect Delta, Gamma, Theta, Vega and Rho
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Model boundary
This calculator uses exact intrinsic value at a leg’s expiration and Black–Scholes theoretical value while that leg remains open. Position Greeks use the same visible legs and model assumptions. Results exclude fees, tax, liquidity, margin, early exercise and assignment behavior. Educational illustration only—not financial advice.