A precision play — you're not just bullish, you have a specific price target in mind. Buy a lower strike, sell two at your target, buy one further out. Cheap to enter, big payout if the stock lands exactly where you expect.
Bullish Butterfly is a uptrend (bullish) options trading strategy (3 legs) engineered for limited risk profiles in low iv market environments.
Middle Strike - Lower Strike - Net Premium Paid
Net Premium Paid
Lower Strike + Debit (Lower) & Upper Strike - Debit (Upper)
| Action | Contract Type | Strike Selection | Quantity |
|---|---|---|---|
| BUY | CALL | Lower Strike | 1x |
| SELL | CALL | Middle Target Strike | 2x |
| BUY | CALL | Upper Strike | 1x |
You're bullish, but you don't want to pay full price for a naked call and you're okay capping your profit in exchange for cheaper entry. Buy one call, sell a higher one to fund it — simple as that.
🔼 Uptrend (Bullish)This is the trade for when you think a stock is about to make an explosive move up — not just drift higher. Sell one call near the money, buy two further out. Cheap or even free to put on, and it pays big if the move actually happens.
🔼 Uptrend (Bullish)The first trade every options trader learns, and honestly still one of the best when you're genuinely convinced a stock is going up. You risk only what you pay, and there's no ceiling on the upside.
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