Value-Trades

Long Put Butterfly Strategy: Real Trade Example


Real Example (July 2025)

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

Outcomes

Stock PriceTotal ValueProfit/Loss
$95$0-$50
$100$5.00+$450
$105$0-$50

Compare With Short Put Butterfly Strategy →

Learn Short Put Butterfly

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