Ideas
.svg)
Intel Junction
Trade
Watchlist
Orders
Positions
Broker Access
Hot Keys
Alert Trigger Order (ATO)
Bracket Order
Target Stoploss Order
Add Broker
Track
Built-Up Breadth
Built-Up Scrip Symbol
Synopsis Futures OI
Built-Up Sectors
Top Stocks
Intraday Movers
Analyze
Charts/ Order & Trade
Multi Strike OI
O&T Watch List
Strategy Chart
Scan
Built-Up Scrip OI-Historical
Built-Up Sector Cycle
Built-Up Sector OI-Historical
Built-Up Scrip Cycle
Comparative Analysis
Tools
Optimizer Find Strategy
Optimizer Find Specific
Optimizer My Forecasts
Optimizer Constrains
Learn
Events
Webinars
Book a Session
Long Call Butterfly
eitherwaysLong Call Butterfly Strategy is a Volatility strategy. It is opposite to Short Call Butterfly. It offers lower reward for relatively higher risk.
Example:
| Instrument | Qty | Price |
|---|---|---|
| SELL NIFTY 30-Jun-26 22600 CE | 65 | 1507.7 |
| BUY NIFTY 30-Jun-26 24100 CE | 130 | 101.25 |
| SELL NIFTY 30-Jun-26 25600 CE | 65 | 0.75 |
When To Execute?
Long Call Butterfly strategy is Directional Neutral strategy that expects high volatility in the underlying to make money. In scenario where strike difference is not equal it is known as Modified Long Call Butterfly.
Trade
Sell 1 lot ITM Call, Buy 2 lots ATM Call and Sell 1 lot deep OTM Call
Advantages
Idle for the stock that is range bound for the long time and is expected to give breakout/ breakdown. It is net credit strategy with defined reward to risk.
Disadvantages
Time decay could be beneficial if the stock is near the extremes and can hurt if the stock expires near middle strike. Higher profit potential comes only near expiration
Maximum Profit
It is a net credit strategy. Maximum Profit arrives if the stock closes above highest call or below the first call
Maximum Loss
Maximum Loss occurs if the stock fails to give any momentum and expires near the ATM strike calls. Maximum loss is difference between first and second call less net credit received.