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Butterfly spread calculator
a narrow bet on going nowhere

A butterfly buys one call low, sells two at the middle, and buys one high. The payoff is a tent: maximum profit exactly at the body strike, falling away on both sides, with risk capped at a small debit. It is the cheapest way to express a precise view that a stock finishes near a specific price.

Outlook: Neutral — pinned near a price

Max profit

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best case at expiry

Max loss

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worst case at expiry

Breakeven

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where the trade turns even

Net debit / credit

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to open the position

Your call butterfly

Per-share premiums. One contract = 100 shares.

Underlying price

Long call @ strike

Premium paid

Short call ×2 @ strike

Premium collected

Long call @ strike

Premium paid

Contracts

100 shares per contract

Profit at expiry Loss at expiry Breakeven Strikes & spot

How a call butterfly pays

Net debit = lower wing + upper wing − (2 × body premium) Max profit = (wing width − net debit) × 100 × butterflies (at the body) Max loss = net debit × 100 × butterflies (beyond either wing) Lower breakeven = lower strike + net debit Upper breakeven = upper strike − net debit

Very cheap for the payoff offered. Butterflies often show 5:1 or better max-profit-to-risk, which is what makes them tempting.
That ratio needs a precise landing. The peak exists at exactly one price. A dollar either way and the profit falls off sharply.
Both wings cap your risk. Beyond either outer strike the loss is fixed at the debit, no matter how far price runs.

Worth naming. The headline risk-reward is real but rarely achieved. Maximum profit requires the underlying to finish at the body strike — not near it, at it. Judge a butterfly by its value across the range you consider likely, not by a peak that occupies a single point.

What this does not model

Every figure here is the payoff at expiry. Before then your position is marked at market prices that still carry time value, so a trade can show a loss while sitting exactly where you wanted it — falling implied volatility alone will do that.

Short legs carry assignment risk. American-style options can be exercised at any time, most commonly on in-the-money calls just before an ex-dividend date. The diagram assumes you hold every leg to expiry.

For the full version — Greeks, marks and what-if scenarios — that is what the GreeksView desk does, in your browser, against option-chain figures from our licensed market-data feed.

Frequently asked questions

What is the maximum profit on a butterfly spread?

The wing width minus the net debit, times 100 per butterfly, and only if the underlying finishes exactly at the body strike. With 5-point wings and a $1.20 debit, that is $380 — but it decays quickly as price moves away from the body.

Where are the breakevens on a butterfly?

The lower strike plus the net debit, and the upper strike minus the net debit. On a 95/100/105 butterfly costing $1.20, that is $96.20 and $103.80 — a narrow profitable band, which is the point of the structure.

Why is my butterfly not showing much profit even though the stock is near the body?

Butterflies realise most of their value only very close to expiry. With time remaining, the short body options still carry substantial time value, which suppresses the position's mark. A butterfly that will pay well often looks flat until the final days.

Is a butterfly a debit or a credit position?

Usually a small net debit — you pay for both wings and collect on the two body options, and the wings normally cost more. That debit is your maximum loss, which is why butterflies are considered low-risk despite involving four contracts.

Are commissions included in these numbers?

No — every figure is gross. On multi-leg positions this matters more than people expect: four legs to open and four to close is eight commissions against what may be a couple of hundred dollars of credit. Check your broker's per-contract rate against the max profit shown here before deciding a trade is worth putting on.

See it on a real chain

The numbers above are the ones you typed. Here is a call butterfly built from SPY's own chain at the last close — real strikes, real premiums, with its breakevens and probability of profit.

SPY call butterfly, priced from the close →

Run this on the GreeksView desk against a real option chain

GreeksView builds positions from real option chains, with Greeks labelled by source and delay, gamma exposure and what-if scenarios — in your browser, on figures from our licensed market-data feed.

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Educational tool only — not investment advice, and not a recommendation to enter any position. Options involve substantial risk and are not suitable for every investor. Figures are theoretical, exclude commissions and taxes, and assume the position is held to expiry. GreeksView is not a broker and does not hold funds.