Neutral3 legsdebitneutral

Buy one call, sell two above it, buy one above that. A cheap, precise bet that a stock lands on a particular price.

The Strategy Builder does not construct this one — the reference shelf is broader than the picker. You can still build it by hand: add the legs below in the builder's leg table.

Three strikes, four contracts: long the wings, short twice the middle. The debit is small because the two short middles pay for most of the long wings.

It is the debit mirror of the iron butterfly — same tent shape, but paid for rather than collected, and peaking where you want the stock to land rather than where you don't.

Maximum loss is the debit, which on the example is a fraction of the maximum gain. That ratio is why butterflies attract attention.

Priced off the guide's shared chain, on a $50 stock. Every figure beneath the diagram is computed from these legs by the same engine the Strategy Builder uses.

Flat at the debit loss below the lower wing and above the upper one.

A peak at the middle strike, where the long lower call is deep in the money and the shorts expire worthless.

Two break-evens, close either side of the peak.

It suits a specific price target on a specific date — a pin, an expected settlement level, a strike with heavy open interest.

The favourable risk-reward is real but the probability is correspondingly low. A structure paying five to one wins roughly that rarely.

Lower implied volatility makes it cheaper, like every debit structure.

Like everything in this guide, these are descriptions of structures and conditions — context for your own decisions, not instructions to trade.