Broken Wing Butterfly
Definition
An unbalanced butterfly spread with one side intentionally having a wider spread than the other, creating a directional bias while limiting or eliminating risk on one side of the trade.
Example
A broken wing butterfly tilts the risk/reward toward one direction, often aiming for a net credit or zero-cost entry.
Related Terms
Frequently Asked Question
What is a Broken Wing Butterfly?
A Broken Wing Butterfly is an asymmetric variation of the standard butterfly spread. By widening one wing, it introduces directional bias and can be structured for a net credit entry.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.