Neutral PLY

Long Put Butterfly Strategy

Same butterfly payoff, built with put options instead of calls.

defined riskpin playput skew advantage

What is the Long Put Butterfly Options Strategy?

A Long Put Butterfly is the exact same trade as a Long Call Butterfly — just using puts. The payoff is identical. Why use puts? Sometimes put options are priced slightly cheaper, making the put butterfly cost less to enter for the same bet.

Why is it Called "Long Put Butterfly"?

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Same as Call Butterfly — "Put" means all three options are puts. "Butterfly" is the payoff shape.

How Does the Long Put Butterfly Trade Work?

  1. 1 Step 1 — Pick a center strike.
  2. 2 Step 2 — Buy one put above center.
  3. 3 Step 3 — Sell TWO puts at center.
  4. 4 Step 4 — Buy one put below center.
  5. 5 Step 5 — Stock closes near center = large return.

Types of Long Put Butterfly Strategies

Most Common

Long Put Butterfly

Buy 1 higher put, sell 2 middle puts, buy 1 lower put. Identical payoff to Call Butterfly.

When to Use the Long Put Butterfly Strategy?

  • ✓ When put butterfly is cheaper than call butterfly on that day
  • ✓ Monthly expiry pin plays
  • ✓ Precise price target

Profit and Loss of the Long Put Butterfly

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

Wing width minus net debit.

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Maximum Loss

The small net debit paid.

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Breakeven Point

Lower: lower strike + debit. Upper: upper strike − debit.

Long Put Butterfly Payoff Diagram

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

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

Long Put Butterfly Example Trade

NIFTY at ₹22,000 Expiry: 14 days
ActionTypeStrikePremium
BuyPut₹22,500-₹600
SellPut₹22,000+₹660 (×2)
BuyPut₹21,500-₹50
Net Credit/Debit -₹10
Max Profit ₹490 — at ₹22,000
Max Loss ₹10
Breakevens: ₹21,510₹22,490
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Same bet as call butterfly but cost ₹10 instead of ₹60. Always compare both versions.

Pros & Cons of the Long Put Butterfly

✓ Advantages
  • Same excellent risk/reward as Call Butterfly
  • Sometimes cheaper
  • Maximum loss is tiny
  • Works the same on pin days
✗ Disadvantages
  • Same limitations — needs precise pin
  • Low probability
  • Three legs, three fees

Long Put Butterfly Frequently Asked Questions

Test Yourself

Quick Quiz

Answer all questions and check your score.

1 How does a Long Put Butterfly differ from a Long Call Butterfly?

2 You should prefer Long Put Butterfly over Long Call Butterfly when:

3 Maximum profit on a Long Put Butterfly is:

4 The breakeven range on a Long Put Butterfly is:

5 A Long Put Butterfly is: