Options / Long call butterfly
Payoff at expiry for a generic example with the stock at 100. Green is profit, red is loss, dashed lines are break-even prices.
You buy one lower call, sell two middle calls and buy one higher call. The cost is small and the best result comes if the stock finishes at the middle strike.
When it is used: When you expect the stock to land near a specific price at expiry.
Main risk: You lose the net cost if the stock finishes outside the outer strikes. Four option legs mean higher trading costs.
- Net cost
- $80 per contract
- Max gain
- +$420
- Max loss
- -$80
- Break-even
- 95.8 / 104.2
- Legs
- 3
The legs in this example
| Action | Contract | Strike | Example price |
|---|---|---|---|
| Buy | 1 call | strike 95 | $7.00 per share |
| Sell | 2 calls | strike 100 | $4.00 per share |
| Buy | 1 call | strike 105 | $1.80 per share |
The Greeks for this strategy
The Greeks measure what moves the price of an option. The values below are model estimates for the generic example (stock at 100, 40% volatility, three months to expiry), only to show the direction of each effect.
| Greek | What it measures | This example | What it means here |
|---|---|---|---|
| Delta | How much the position gains or loses for a $1 move in the stock, per 100 shares. | +0 shares | Roughly neutral to small moves. |
| Gamma | How fast delta changes as the stock moves. | -0.12 | Little change in delta. |
| Theta | Value gained or lost each day from time passing, all else equal. | +0.27 $/day | Time has little effect. |
| Vega | Change in value for a one-point rise in implied volatility. | -1.23 $/pt | Barely affected by volatility. |
Research that fits this view: expected prices vs today
Our latest Hold-rated company research with the price ranges we set when we published, compared with the latest closing price. These are links to research, not trade ideas. Links open in a new tab.
| Research | Published | Price at publish | Price now | Change | Our 3-month range | Our 6-month range | Price vs 3-month range |
|---|---|---|---|---|---|---|---|
| HALO: Hold-rated research | 2026-11-03 | $128.62 | $128.62 close 2026-11-03 | +0.0% | $108.94 – $156.94 | $101.01 – $169.26 | inside range |
| MNDY: Hold-rated research | 2026-11-03 | $93.59 | $93.59 close 2026-11-03 | +0.0% | $67.06 – $131.16 | $58.36 – $150.71 | inside range |
| WLDN: Hold-rated research | 2026-11-03 | $74.64 | $74.64 close 2026-11-03 | +0.0% | $56.00 – $92.00 | $50.00 – $102.00 | inside range |
| CENX: Hold-rated research | 2026-11-02 | $33.53 | $33.33 close 2026-11-03 | -0.6% | $25.50 – $47.90 | $22.40 – $54.60 | inside range |
| DE: Hold-rated research | 2026-11-02 | $667.60 | $665.83 close 2026-11-03 | -0.3% | $580.00 – $740.00 | $540.00 – $800.00 | inside range |
| RIO: Hold-rated research | 2026-11-02 | $82.73 | $81.62 close 2026-11-03 | -1.3% | $71.00 – $96.70 | $66.60 – $103.10 | inside range |
Results for this strategy
We track our own hypothetical examples privately and publish each result at least 30 days after the play has closed, wins and losses together, once there are enough closed plays to say something. None have closed yet. This table will list every closed play with its expiry result and a link to the research it came from.
Back to all option strategies · How we track results