Long Call Butterfly (Bullishly Positioned)
Construct a low-cost 1-2-1 Call Butterfly centered at an upside target to capture high Risk:Reward returns if price hits the target zone.
Interactive Payoff Curve & Greeks Simulation
Visualize the theoretical profit & loss at expiry vs T+0 immediate day curves. Drag the simulation slider to stress-test your trade.
Option Payoff Curve & Greeks
Net Option Greeks (Sensitivity Profile)
Values per 1 Lot standard unitMulti-Leg Position Structure (3 Legs)
| Action | Instrument / Strike | Type | Expiry | Approx Delta | Est. Premium | Qty Ratio |
|---|---|---|---|---|---|---|
| BUY | 24,700 CE (Lower Wing) | CALL | Monthly Expiry | +0.35 | ₹180 | 1x |
| SELL | 25,000 CE (Center Body) | CALL | Monthly Expiry | +0.20 | ₹75 | 2x |
| BUY | 25,300 CE (Upper Wing) | CALL | Monthly Expiry | +0.10 | ₹25 | 1x |
How the Structure Works
Combines a Bull Call Spread (24700/25000) and a Bear Call Spread (25000/25300).
A Bullish Call Butterfly places the center "peak" (2 short calls) directly at your upside technical target (e.g. 25,000). If the underlying rallies into the sweet spot, the strategy yields an outstanding 1:4 to 1:6 Risk-to-Reward ratio for a tiny upfront debit.
Institutional Strike Selection Rules
Phased Execution Blueprint
Follow this structured sequence to eliminate emotional hesitation during order entry, lifecycle management, and final exit.
Target Pinning
Deploy when confident price will stall at a specific upside resistance target.
Interactive Margin & Position Size Calculator
Calculate exact lot sizing based on the 1-2% risk rule to preserve capital against Black Swan events.
Options Position Size & Max Risk Calculator
Total net liquid equity in your brokerage account
Recommended: 1.0% - 2.0% for disciplined longevity
Wing width max loss or defined mental/system SL
Rigorous Risk Rules & Adjustment Protocols
Non-negotiable parameters for stop-loss triggers, portfolio caps, and firefighting adjustments when market tests your strikes.
- Close when price reaches center strike.
Defined risk; very low margin required.
NIFTY Bullish Butterfly Trade Walkthrough
Targeted Nifty 25,000 milestone.
Bought 24700 CE / Sold 2x 25000 CE / Bought 25300 CE (Net Debit = ₹55 = ₹1,375)
- Nifty pinned near 24,980 on expiry day.
Common Mistakes to Avoid
Why it happens: Greed when market rallies too far.
Solution: Take profit at the peak.
Institutional Pro Tips
Long Call Butterfly (Bullishly Positioned) FAQs
What happens if the stock goes way too high past the butterfly?
You only lose the small net debit paid; you have zero unlimited loss risk.
Alternative & Complementary Strategies
Buy 1 lower wing, sell 2 center body, and buy 1 higher wing options for a small debit, targeting a pin at the center strike.
Sell an ATM Straddle and buy OTM protective wings (Call & Put) to create a defined-risk, high-credit neutral strategy.
Buy an ATM Call and simultaneously sell a higher OTM Call to reduce cost, cap risk, and neutralize theta decay.