Long Put Butterfly Calculator
Search a symbol to visualize the potential profit and loss for a long put butterfly option strategy.
What is a long put butterfly?
NeutralLimited ProfitLimited Loss
A put butterfly spread is the combination of a bull put spread and a bear put spread. This creates a neutral strategy that is cheap and has a good risk/reward ratio.
Decreasing volatility will increase the profitable area, while increasing volatility will narrow the profitable range. Time is helpful when the position is profitable, and harmful when it isn't.
- Buy a put at strike A
- Sell two puts at strike B
- Buy a put at strike C