Build an Inverse Put Broken Wing Strategy

What is a inverse put broken wing?

BearishLimited ProfitLimited Loss

Opposite of a put broken wing, and similar to a short put butterfly. It has a bearish 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 put at strike A
  • Buy two puts at strike B
  • Sell a put at strike C