Butterfly Spread Calculator
Calculate potential profit and loss for butterfly spreads. A low-cost strategy that profits when the stock stays near a target price.
A butterfly spread uses three strike prices: buy 1 at the lowest, sell 2 at the middle, and buy 1 at the highest. Maximum profit occurs when the stock closes exactly at the middle strike at expiration.
Current price: $100.00
Max Profit
$400.00
Max Loss
$100.00
Target Price
$100.00
Wing Width
$5.00
Lower Breakeven
$96.00
Upper Breakeven
$104.00
Understanding Butterfly Spreads
A butterfly spread is a neutral strategy that combines bull and bear spreads with a fixed risk and capped profit. It's ideal when you expect the stock to stay near a specific price at expiration.
Structure
- Buy 1 option at lower strike
- Sell 2 options at middle strike (body)
- Buy 1 option at upper strike
- All same expiration date
Key Formulas
Maximum Profit
Max Profit = Wing Width × 100 - Net DebitMaximum Loss
Max Loss = Net Debit PaidRelated Calculators
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