Twin Peaks Calculator

By Dennis Bosmans · Updated June 2026 · 2 min read · Risk disclaimer

Twin Peaks is an original, experimental structure — two butterflies at once: a put butterfly below the current price and a call butterfly above it. The payoff has two peaks, so it profits from a moderate move in either direction while keeping the risk defined and small.

Open the Twin Peaks calculator →

Key characteristics

Six legs: a put butterfly centred below spot plus a call butterfly centred above it.
Two profit peaks — one on a moderate drop, one on a moderate rally.
Direction-agnostic: you do not need to know which way the stock moves, only that it moves a little.
Defined risk, net debit — the most you can lose is the small premium paid.

When to use Twin Peaks

Twin Peaks is an experimental, non-textbook structure. Use it when you expect the stock to make a moderate move but are genuinely unsure of the direction — and you think it will land near one of two target zones rather than exploding far past them.

Because it is two butterflies, it is cheap to put on and the risk is small, but it also has a narrow sweet spot: a flat stock or a huge move both leave it at a small loss.

How the payoff works

Each butterfly peaks at its own body strike, so the combined payoff has two humps — one below the current price, one above. Between and beyond the peaks the value falls back toward the small net debit you paid.

Maximum profit is reached if the stock pins one of the two body strikes at expiration. The maximum loss is the net debit, lost if the stock either sits still or runs far past both wings.

Worked example. Stock at $100. Build a put butterfly with the body around $96 (long $94 put, short two $96 puts, long $98 put) and a call butterfly with the body around $104 (long $102 call, short two $104 calls, long $106 call). The whole package costs a small net debit — your max loss. Profit peaks near $96 and $104; a move to either one is the ideal outcome.

Calculate it live

Use the free OptionProfit Twin Peaks 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.

Key takeaways

Twin Peaks = a put butterfly below spot + a call butterfly above it (an experimental double butterfly).
Two profit peaks reward a moderate move in either direction.
Defined, small risk: the net debit paid is the most you lose.
Worst outcomes are a flat stock or a move that overshoots both wings.

Frequently asked questions

Is Twin Peaks a real options strategy?

It is an original, experimental structure we built for exploration — but it is made entirely of standard butterflies, so it is a perfectly valid (if exotic) defined-risk trade. It is the same idea as a double butterfly.

When does Twin Peaks make the most money?

When the stock finishes right at one of the two body strikes at expiration, pinning the top of one of the two peaks.

What is the risk of Twin Peaks?

Only the net debit you pay. You lose it if the stock barely moves, or moves so far that it blows past both butterflies.

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