← Options Glossary

Broken Winged Butterfly

A combination of a long call butterfly and a short OTM call vertical, or a long put butterfly and a short OTM put vertical, so one side is wider than the other. The short vertical finances the long butterfly, and increases the probability of profit of the strategy.

This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.