Long Put Butterfly
The same as the call butterfly, but built from puts (sometimes handier or more liquid). The bet is the same: price freezes at your chosen level by the target date, where profit is highest.
How the Long Put Butterfly works
Like the call butterfly, max profit is at the center strike; on the edges you lose only the debit. It is built from puts, useful for a bearish lean on the position.
Placing strikes at GEX levels
Center at Max Pain or a GEX magnet; wings at neighboring levels. The ideal regime is positive GEX and an expected pin.
The levels are computed live in the GEX Terminal — build it in the Position Builder.
When to open, the Greeks and managing the position
The payoff matches the call butterfly; choose it when the put options in the series are more liquid. Open it on a low-volatility, flat market near the central strike. Max profit = (wing width − debit); breakevens: lower + debit and upper − debit.
Greeks: positive theta at the centre, negative vega. Management: the key difference from the call version is early-exercise risk on the short puts (especially on stocks before dividends or from carry cost), so watch how deep in-the-money they go.
FAQ
It is built from puts; the payoff is symmetric but it suits a bearish lean.
Capped at the debit paid.
Build the Long Put Butterfly on live BTC and ETH quotes in the Position Builder.
Open the Position BuilderRelated strategies
Information is for educational purposes only and does not constitute investment advice. Options trading carries high risk.