Build an Inverse Call Broken Wing Strategy

What is a inverse call broken wing?

BullishLimited ProfitLimited Loss

Opposite of a call broken wing, and similar to a short call butterfly. It has a bullish bias and a lower chance of profit compared to a butterfly, but a higher max profit.

(also known as: Inverse Skip Strike Butterfly)
ABCProfitLossStock Price
  • Sell a call at strike A
  • Buy two calls at strike B
  • Sell a call at strike C