TheSkewLab

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Long put butterfly

Neutral / rangeLimited profitLimited loss

Put-built butterfly: same pin-the-middle profile as the call version.

Payoff at expiry — live BTC example

spot 65,891
Net debit
$663.59
Max profit
$536.41
Max loss
$663.59
Breakevens
65,264 / 66,336
Example legs (0.7 DTE front)
  • Buy 67,000 put
  • Sell 2× 65,800 put
  • Buy 64,800 put

Entry greeks (per 1 BTC notional): Δ -0.113 · Γ -0.4482 per 1% · vega $-14.05/pt · theta $244.32/day

How it works

Identical payoff to the call butterfly, constructed from puts; choose whichever side quotes tighter.

When to use it

Same pin thesis; put quotes sometimes give a cheaper fill.

Risks & management

Same narrow peak; live chains with uneven strike spacing skew the wings (visible in the example).

Open in payoff builder →

Related structures

Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.