Value-Trades

Long Call Butterfly Strategy: Real Trade Example


Real Example (July 2025)

A long call butterfly spread involves buying one lower strike call, selling two at-the-money calls, and buying one higher strike call. It profits from minimal price movement near the middle strike.
  • Stock: XYZ Corp
  • Outlook: Neutral with low volatility
  • Setup: Buy 1 XYZ $95 Call @ $6.00, Sell 2 XYZ $100 Calls @ $3.50, Buy 1 XYZ $105 Call @ $1.50
  • Net Debit: $0.50 ($50 per contract)
  • Max Gain: $4.50 ($450 per contract)
  • Max Loss: $50
  • Breakeven: $95.50 and $104.50

Outcomes

Stock Price at Expiration Total Value Profit/Loss
$95 $0 -$50
$100 $5.00 +$450
$105 $0 -$50

Compare With Short Call Butterfly Strategy →

Learn Short Call Butterfly

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