OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Broken Wing Butterfly Spread'

« Back to the Options Trading Glossary

What is Broken Wing Butterfly Spread in Options Trading ?

Broken Wing Butterfly Spread
A type of butterfly spread which is skewed to create reward in a single direction within a current range and has risk if the underlying moves in the correct direction but beyond the expected move implied by current option prices. This is achieved by setting up a normal butterfly spread but then skipping, or moving further out of the money, the final protective put or call.




Share
>
Thanks for sharing. Connect with us on social media for additional content!

Send this to a friend

Hi, this may be interesting you: Broken Wing Butterfly Spread! This is the link: https://www.optionautomator.com/Options-Trading-Glossary/broken-wing-butterfly-spread/