Options Glossary

Glossary: Call Broken Wing Butterfly Spread

Last Updated: July 12, 2015

Glossary

Call Broken Wing Butterfly Spread

What Does Call Broken Wing Butterfly Spread Mean in Options Trading?

It's a type of Butterfly Spread where risk/reward profile is skewed in favor of the trader by which no losses occur or a slight credit is taken even if the underlying security goes down substantially. The strategy profits the most if the underlying price appreciates within the expected range.

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