Build a Put Broken Wing Strategy
What is a put broken wing?
BullishLimited ProfitLimited Loss
Similar to a put butterfly spread, but with a slightly bullish 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 put at strike A
- Sell two puts at strike B
- Buy a put at strike C