Neutral DPLAT

Double Plateau Strategy

The safe Batman — two flat profit zones, fully defined risk.

neutraldefined riskdual butterflyadvancedsafe batman

What is the Double Plateau Options Strategy?

A Double Plateau is like a Batman strategy but with protective wings added on both sides. Instead of unlimited risk at the extremes, your maximum loss is capped.

The payoff creates two flat profit "plateaus" side by side — like two adjacent butterfly spreads. If the stock moves to either plateau zone, you profit. In the dip between them, you may lose a small amount. Beyond the outer wings, loss is fixed.

This is the strategy for traders who love the Batman concept but cannot tolerate undefined risk. More legs (6 total), but fully safe.

Why is it Called "Double Plateau"?

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"Double" because there are two profit zones. "Plateau" because each profit zone is flat-topped (unlike the peaked Batman). The payoff graph shows two raised plateaus with a valley in between, like a mesa formation in geology.

How Does the Double Plateau Trade Work?

  1. 1 Step 1 — Expect the stock to stay range-bound.
  2. 2 Step 2 — Build a call butterfly centered above spot (bull butterfly).
  3. 3 Step 3 — Build a put butterfly centered below spot (bear butterfly).
  4. 4 Step 4 — The two butterflies together create two flat profit zones.
  5. 5 Step 5 — If the stock moves to either zone, profit. If it stays dead center or goes to extremes, small fixed loss.

Types of Double Plateau Strategies

Most Common

Double Plateau (Standard)

Two adjacent butterflies — one call butterfly and one put butterfly — placed side by side. 6 legs total. Defined risk on all sides.

When to Use the Double Plateau Strategy?

  • ✓ When you love the Batman idea but want defined risk
  • ✓ Range-bound markets where you expect the stock to drift in one direction
  • ✓ Monthly expiry with two nearby max-pain levels
  • ✓ When you want to buy two lottery tickets — one bullish, one bearish — cheaply

Profit and Loss of the Double Plateau

Before looking at the chart, here is a plain-English summary of what you can make and what you can lose.

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Maximum Profit

At either plateau zone — the profit level is the butterfly width minus net debit.

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Maximum Loss

Net debit paid. Fixed and known before entering.

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Breakeven Point

Multiple — on each edge of each plateau zone.

Double Plateau Payoff Diagram

The chart below shows how profit/loss changes with the underlying price at expiry. Green zone = profit, red zone = loss.

Double Plateau Payoff Diagram illustrating profit and loss zones over underlying price0Low priceHigh priceProfitLoss
Illustrative payoff at expiry — not to scale

Double Plateau Example Trade

NIFTY at ₹22,000 Expiry: 14 days
ActionTypeStrikePremium
BuyCall₹22,200-₹130
SellCall₹22,500+₹60 × 2 = +₹120
BuyCall₹22,800-₹18
BuyPut₹21,800-₹120
SellPut₹21,500+₹55 × 2 = +₹110
BuyPut₹21,200-₹15
Net Credit/Debit -₹53
Max Profit ~₹247 at either plateau
Max Loss ₹53 — fully defined
Breakevens: Multiple — edges of both plateaus
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NIFTY drifted to ₹21,500 (put plateau zone). Put butterfly nearly at max value. Profit: ~₹200 on ₹53 = 377% return with zero risk of catastrophe.

Pros & Cons of the Double Plateau

✓ Advantages
  • Fully defined risk — safe version of Batman
  • Two profit zones — more flexible than a single butterfly
  • Cheap entry
  • No unlimited risk in any scenario
✗ Disadvantages
  • 6 legs — highest leg count of any strategy here
  • Significant transaction costs
  • Middle dip zone loses money
  • Requires precise strike selection

Double Plateau Frequently Asked Questions

Test Yourself

Quick Quiz

Answer all questions and check your score.

1 Double Plateau is similar to Batman but:

2 A Double Plateau is built from:

3 Double Plateau has how many legs total?

4 The profit shape of a Double Plateau shows:

5 The trade-off of Double Plateau vs Batman is: