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Long call butterfly calculator
Neutral debit. Buy one call, sell two at a middle strike, buy one further call.
OutlookNeutral
Max profitLimited
Max lossLimited
LevelIntermediate
What is a long call butterfly?
A long call butterfly profits if the stock pins at the short strike. Loss is limited to the debit if price finishes outside either wing.
Legs
- Buy a call at A
- Sell two calls at B
- Buy a call at C
Live example on SPY
Long Call Butterfly
Net debit$4.00
Max loss$4.00
Max profit$196.00
Chance of profitLocked: ProUpgrade
BreakevensBetween $754.04 − $757.96At expiration
- 754C+112/18 · $20.51
- 756C−212/18 · $19.20
- 758C+112/18 · $17.93
With SPY at 755.53, on the Dec 18 expiration (49 days out): buy 1 754 call, sell 2 756 calls, and buy 1 758 call. Net debit $4. Max profit $196; max loss $4. Breakevens at expiration: Between $754.04 − $757.96.
Open this long call butterfly in the calculator to move the strikes, change the date and implied volatility, and read profit and loss by price and date.
Questions
- What is a long call butterfly?
- A long call butterfly profits if the stock pins at the short strike. Loss is limited to the debit if price finishes outside either wing.
- When does a long call butterfly make money?
- Neutral debit. Buy one call, sell two at a middle strike, buy one further call.
- What is the max profit of a long call butterfly?
- Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.
- What is the max loss of a long call butterfly?
- Limited: there is a floor under what it can lose. The calculator gives the figure for your strikes and expiration.
- How do I calculate a long call butterfly's profit and loss?
- Open the long call butterfly in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.