What is a Long Call Butterfly?
A Long Call Butterfly is a three-legged strategy: Buy 1 lower-strike Call, Sell 2 middle-strike Calls, Buy 1 upper-strike Call. All at equal intervals. Maximum profit if the stock pins exactly at the middle strike at expiry. Very low cost. A precision "pin trade." This is an advanced strategy typically used when you expect the stock to close very close to a specific price. The profit zone is narrow but the reward-to-risk ratio can be excellent. Think of it as a very precise bet on where the stock will be — not just whether it will go up or down.
At a Glance
Max Profit
Wing Width − Net Debit (at middle)
Max Loss
Net Debit Paid
Breakeven
Lower + Debit / Upper − Debit
Type
Debit · 3 Legs
How to Set It Up
| Action | Type | Strike | Expiry | Qty |
|---|---|---|---|---|
| Buy | Call (CE) | Lower Strike | Same expiry (25–40 DTE) | 1 Lot |
| Sell | Call (CE) | Middle Strike (×2) | Same expiry | 2 Lot |
| Buy | Call (CE) | Upper Strike | Same expiry | 1 Lot |
P&L Simulator
Long Call Butterfly
📊 Long Call Butterfly — Payoff Chart + P&L Calculator
Index Price: 22000 · Lower Strike: 21700 · Middle Strike: 22000 · Upper Strike: 22300 · Lower Premium: 195 · Middle Premium: 140 · Upper Premium: 85 · Lot Size: 75 · Price at Exit: 22000
When Should You Use This Strategy?
✓ When to Use / ✕ When to Avoid / ◉ IV / ◷ DTE
3 use items · 2 avoid items
