Build a Call Broken Wing Strategy
What is a call broken wing?
BearishLimited ProfitLimited Loss
Similar to a call butterfly spread, but with a slightly bearish bias. It has a higher chance of profit and removes risk from one side. Time is generally harmful, except when it is profitable near strike B.
(also known as: Skip Strike Butterfly)
- Buy a call at strike A
- Sell two calls at strike B
- Buy a call at strike C