Options Glossary

Glossary: Broken Wing Butterfly Spread

Last Updated: July 12, 2015


Broken Wing Butterfly Spread

What Does Broken Wing Butterfly Spread Mean in Options Trading?

A type of butterfly spread which is skewed to create reward in a single direction within a current range and has risk if the underlying moves in the correct direction but beyond the expected move implied by current option prices. This is achieved by setting up a normal butterfly spread but then skipping, or moving further out of the money, the final protective put or call.

Related Options Trading Terms

homeusercrossmenuarrow-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram