Short Call Butterfly

Volatility

Inverse of long call butterfly.

Performance across all datasets

SymbolReturn %SharpeMax DD %Win %Avg/trade %Trades
SPY-1422.0%-2.13+1323.9%+0.0%-74.8%19
QQQ-1306.6%-2.21+1205.8%+0.0%-68.8%19
IWM-1436.3%-1.79+1392.1%+5.3%-75.6%19
DIA-986.2%-1.58+952.1%+5.3%-51.9%19
Avg-1287.8%-1.93+1218.5%+2.6%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)