Call vs Put Broken Wing Butterfly

A call or Put Broken Wing Butterfly can move the larger exposure to different sides of the target. The typical credit call arrangement has a wider upper wing, while the typical put arrangement has a wider lower wing. The actual strikes and net premium decide the result.

What Are You Choosing Between?

Choose the vulnerable side deliberately. A trader concerned about a sharp rise should inspect the call version’s upper tail; a trader concerned about a sharp fall should inspect the put version’s lower tail. Neither the option type nor a small opening credit is enough to describe the risk.

The Main Differences

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Results for the example positions below, before costs
Compare	Call Broken Wing Butterfly	Put Broken Wing Butterfly
Construction	A wider upper wing changes the upside tail risk.	A wider lower wing changes the downside tail risk.
Example entry	$50 net credit	$50 net debit
Maximum profit	$550	$450
Maximum loss	$450	$550
Breakeven price	$105.50	$95.50; $104.50

A Practical Example

The call example uses $95/$100/$110 and receives $50. The put example uses $90/$100/$105 and costs $50. These are different wing arrangements, not parity-equivalent constructions. The table shows how the unfavorable tail changes sides and why the debit put example still loses its premium after a sufficiently large rise.

XYZ is at $100 when the option trades are entered. Premiums below are per share; each option contract covers 100 shares. Each column shows one complete position, not an equal-capital allocation. Prices are hypothetical and exclude commissions, taxes, dividends, financing costs and early-assignment cashflows.

Exact quantities, strikes, premiums and days to expiration
Position	Example legs
Call Broken Wing Butterfly	Buy 1 $95 call, 30 days, at $8 Sell 2 $100 calls, 30 days, at $5 Buy 1 $110 call, 30 days, at $1.50
Put Broken Wing Butterfly	Buy 1 $90 put, 30 days, at $2.50 Sell 2 $100 puts, 30 days, at $5 Buy 1 $105 put, 30 days, at $8

Comparing the Expiration Payoffs

Call vs Put Broken Wing Butterfly — expiration payoff comparison — Profit or loss at the common 30-day expiration, including the stated entry amounts. Lines overlap when the example payoffs match. The displayed price window does not cap an unlimited loss or gain.

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Expiration profit / loss in dollars
XYZ price	Call Broken Wing Butterfly	Put Broken Wing Butterfly
$80	$50	−$550
$95	$50	−$50
$100	$550	$450
$105	$50	−$50
$120	−$450	−$50

What to Watch For

Do not assume mirrored strikes trade at mirrored premiums. Volatility skew and available quotes matter. If calls and puts instead use exactly the same signed quantities and strikes, analyze parity before claiming that the option type alone has changed the exposure.

Before expiration, time value and implied volatility can change a position’s market value. Short options also create exercise and assignment obligations. Review the full strategy guides for position management and settlement details.

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