Short Call Butterfly

Volatility

Inverse of long call butterfly.

Performance across all datasets

SymbolReturn %SharpeMax DD %Win %Avg/trade %Trades
SPY-841.2%-1.07+776.8%+21.1%-44.3%19
QQQ-656.0%-0.97+649.5%+15.8%-34.5%19
IWM-399.3%-0.59+369.3%+15.8%-21.0%19
DIA-887.6%-1.37+862.1%+5.3%-46.7%19
Avg-696.0%-1.00+664.4%+14.5%19
Cumulative P&L % — all symbols
Detail:
Cumulative P&L % — SPY

Risk Profile

Max Profit
Net credit
Max Loss
At middle strike
Breakeven
Around body strike
Outlook
Long volatility

Parameters

ParameterDefaultDescription
body_strikeATMMiddle strike

Methodology

A credit structure that benefits from large movement away from the middle strike.

Implementation

# -C(K1) + 2C(K2) - C(K3)