Value-Trades

Short Put Butterfly Strategy: Real Trade Example


Real Example (July 2025)

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

Outcomes

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

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Learn Long Put Butterfly

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