About Butterfly option calculator
A butterfly option strategy is a multi-leg, market neutral options strategy with limited profit and loss potential. The level of profit or loss is known at the time of taking position and thereby making it a reliable and risk defined strategy. Usually, a butterfly option strategy combines two spreads, i.e. it consists of two put options (one with a long position and the other with a short position) and two call options (one with a long position and the other with a short position). Therefore, a butterfly option strategy is a four-legged strategy, but uses only three options strikes. A short put butterfly option strategy is formed by selling an out-of-the-money put option, buying two at-the-money put options and again selling in-the-money put options. In other words, the butterfly put option strategy is a combination of long put option spread and short put option spread.ActionQtyOption TypeMoneynessSell Open a FREE* Demat + Trading account and enjoy Zero commission* on Mutual Funds and IPO ₹20* per order on Equity, F&O, Commodity and Currency Enter your mobile number to continue *By signing up you agree to our Terms and Conditions 1PutOTMBuy2PutATMSell1PutITMThe strategy is garnered to be neutral on market direction but plays on the possibility of rise in volatility. Along with being market neutral the risk and reward in the short put butterfly position options are limited and predetermined. This is a net credit strategy and since the short put butterfly spread is directional neutral, it has two breakeven points;Lower breakeven point = lower strike + net premium receivedUpper breakeven point = upper strike – net premium receivedTwo breakeven points would mean, there are two ways to profit from this strategy. The maximum profit potentials are achieved when the price of underlying security crosses either of the breakeven points, which can only happen when volatility rises and price changes rapidly. But since the strategy is defined as a limited risk-reward outcome the gains are limited to the quantum of option premium received.Profit = net premium received On the flip side, when volatility shrinks and prices remain unchanged or within the two breakeven points. The maximum potential loss though limited, requires a bit of calculation;Loss = (Lower strike – middle strike + net premium received)While deploying this strategy, it is important to remember that the strikes prices are set at equidistant from each other i.e difference between lower and middle strike is same as middle and higher strike price. Illustration:The Nifty50 index is currently trading at 17,530. A short put butterfly spread is initiated by buying 2 put options of Nifty50 at strike price of 17,550 at ₹165, which results in outflow and selling one out-of-the-money put option at strike 17,450 for ₹120 and one in-the-money put option at strike price of 17,650 for ₹225. We are able to secure a net inflow of ₹15.StrategyIndexActionStrikePremiumShort Put ButterflyNifty50Sell Put17450 (strike 1)20Buy Put17550 (strike 2)-65Buy Put17550 (strike 3)-65Sell Put17650 (strike 4)125 Net Premium15 *Strikes are arranged in ascending order and numbered accordingly.The above neutral strategy provides
Key features of the Butterfly option calculator that are enabled through these drivers include:
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A free program for Android, by Jack Martin Apps - My Photo Keyboard - Picture.The free Blue Butterfly Keyboard app for Android is the most customizable keyboard available for your phone. You can use the keyboard as a template for your own style, with the option to change the font, background, and many more elements.With over 3200+ emojis and emoticons, you’ll find yourself typing messages and social media posts with ease. The built-in word prediction function makes typing even easier.We will also be adding new themes for you to use, to give your keyboard a stylish look. The built-in key sounds and vibration lets you know when you’re typing a letter.Blue Butterfly Keyboard is designed to work with any device. The app can be used on tablets and phones.We provide iPhone emojis for the keyboard, so you’ll be able to use emojis and emoticons on the iPhone as well.We are always working to provide the best user experience for our users.Program available in other languagesTélécharger Blue Butterfly Keyboard [FR]Ladda ner Blue Butterfly Keyboard [SV]Download Blue Butterfly Keyboard [NL]Scarica Blue Butterfly Keyboard [IT]Unduh Blue Butterfly Keyboard [ID]下载Blue Butterfly Keyboard [ZH]Descargar Blue Butterfly Keyboard [ES]Blue Butterfly Keyboard indir [TR]ダウンロードBlue Butterfly Keyboard [JA]Tải xuống Blue Butterfly Keyboard [VI]Pobierz Blue Butterfly Keyboard [PL]ดาวน์โหลด Blue Butterfly Keyboard [TH]تنزيل Blue Butterfly Keyboard [AR]Download do Blue Butterfly Keyboard [PT]Blue Butterfly Keyboard 다운로드 [KO]Скачать Blue Butterfly Keyboard [RU]Blue Butterfly Keyboard herunterladen [DE]Explore MoreLatest articlesLaws concerning the use of this software vary from country to country. We do not encourage or condone the use of this program if it is in violation of these laws.
