Short Call Butterfly
| Leg | Trade | Option | Lots | Strike |
|---|---|---|---|---|
| L1 | SELL | CALL | 1 | ATM - 4 |
| L2 | BUY | CALL | 2 | ATM |
| L3 | SELL | CALL | 1 | ATM + 4 |
Strategy Details
| Name | Short Call Butterfly |
| Type | Three-Leg Credit |
| Description | Sell a call butterfly to benefit from the underlying moving away from the center strike. |
| Outlook | Expecting higher volatility or a strong directional move |
| Max Profit | Limited to the net premium received |
| Max Loss | Limited to the strike width minus premium received |






