Bearish Options Strategies
Learning how to make money in down markets is a critical component to your long-term success rate. The ability to profit when stocks are falling gives options traders a superior edge in the financial markets.
Next Lesson
Exit Course

Call Broken Wing Butterfly

A call broken-wing butterfly spread is an advanced bearish option strategy with the goal of having no downside risk. Call broken-wing butterflies consist of buying one in-the-money long call, selling two out-of-the-money short calls, and buying one out-of-the-money long call above the short calls.
Call Broken Wing Butterfly
Kirk Du Plessis
Apr 19, 2021

A call BWB spread is an advanced strategy where you take a traditional butterfly spread above the market and skip 1 strike price to create an unbalanced spread. These strategies are typically done for a net credit with the goal of having no risk to the downside. Skipping a strike allows you do to this because you buy a further OTM call option at a cheaper price, which reduces the overall cost of the strategy.

No tags found.
Next lesson
Put Calendar Spread
A put calendar spread is a multi-leg, risk-defined strategy with unlimited profit potential. Put calendar spreads are neutral to bullish short-term and slightly bearish long-term.

Trade smarter with automation