Broken Wing Butterfly

Advanced Butterfly Strategies Advanced NIFTY BANKNIFTY FINNIFTY Stock Options

Directional toward body strike with protection on continuation side

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Quick Reference

Strategy Type Modified Butterfly - Directional with Asymmetric Risk
Market Outlook Directional toward body strike with protection on continuation side
Risk Profile Concentrated on standard wing side, None/Minimal on broken wing side
Reward Profile Maximum at body strike, reduced profit past broken wing
Time Horizon 7-14 days optimal, expiry day for pinning plays
Capital Requirement Net debit Rs.30-60 per lot or credit, max loss Rs.3,000-5,000
Best Used When Directional view toward specific target price, want credit entry with butterfly profit potential

When to Use This Strategy

Directional view toward specific target price, want credit entry with butterfly profit potential

India-Specific Notes

Lot Sizes

Stock Options Varies by stock

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