A long butterfly combines a bull and bear spread to profit if the stock pins near the middle strike at expiration. Low cost, defined risk, high reward-to-risk near the target.
Open the Long Call Butterfly calculator →A long call butterfly buys one lower-strike call, sells two middle-strike calls, and buys one higher-strike call, with the strikes equally spaced. The result is a low-cost position whose payoff looks like a tent peaking at the middle strike.
It is a precise, low-cost bet on the stock landing at a specific price by expiration, offering a high reward-to-risk ratio if you are right about where it pins.
Maximum profit occurs only if the stock finishes exactly at the middle strike; maximum loss is the small net debit, lost if the stock moves well beyond either wing.
Because the peak is a single point, butterflies are usually managed for a partial profit rather than held for a perfect pin, and they benefit from low volatility and time decay drawing the price toward the centre.
Use the free OptionProfit Long Call Butterfly calculator to load a live option chain, build the trade, and instantly see the payoff chart, breakevens, probability of profit, Greeks and a Monte Carlo simulation of outcomes.
Only if the stock finishes exactly at the middle strike at expiration; in practice most traders close early for a partial profit.
Yes — the most you can lose is the small net debit you paid to open it.
A butterfly targets a precise price with a low cost and high payoff; an iron condor profits over a wider range for a steadier credit.
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