What is a Broken Wing Butterfly?

What is a Broken Wing Butterfly?

The broken wing butterfly (BWB) is an advanced strategy involving the use of multiple options.  The butterfly strategy is generally thought of as a neutral to slightly directional strategy, which will often benefit when the market does not move too much in price. A...
SPX Jul 11 Broken Wing Butterfly Trade Started

SPX Jul 11 Broken Wing Butterfly Trade Started

I put a new SPX Broken Wing Butterfly trade on yesterday with 29 days to expiration. It's an eight lot at 1910/1890/1830 with a put debit spread at 1910/1890 for a next credit of $926 on $31,574 of Reg T margin. That would be +2.93% in 29 days if held to expiration...