Short put butterfly
Big moveLimited profitLimited loss
Put-built short butterfly: profits when price leaves the body.
Payoff at expiry — live BTC example
Net credit
$626.25
Max profit
$626.25
Max loss
$773.75
Breakevens
76,826 / 78,374
Example legs (0.8 DTE front)
- Sell 79,000 put
- Buy 2× 77,600 put
- Sell 76,400 put
Entry greeks (per 1 BTC notional): Δ -0.002 · Γ 0.1846 per 1% · vega $9.88/pt · theta $-202.73/day
How it works
Same escape-the-middle payoff as the short call butterfly, built from puts.
When to use it
Same anti-pin thesis.
Risks & management
Same tight economics; execution costs can eat the edge.
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.