---
title: "Long Call Butterfly — options strategy"
type: "options-strategy"
topic: "Options strategies (Indian markets)"
category: "Volatility"
outlook: "Neutral / range-bound"
complexity: "advanced"
risk: "defined"
slug: "long-call-butterfly"
url: "https://learn-derivatives.tapetide.com/strategies/long-call-butterfly"
markdown_url: "https://learn-derivatives.tapetide.com/strategies/long-call-butterfly.md"
source: "DeltaDesk by Tapetide"
---

# Long Call Butterfly

> **In plain English:** A cheap, precise bet that the price lands on a specific level. You buy one lower call, sell two in the middle, and buy one higher. It costs little and pays well if the price pins the middle strike at expiry.

**Category:** Volatility · **Market view:** Neutral / range-bound · **Complexity:** advanced · **Risk:** Defined

## Structure

- Buy ATM-2 strikes call
- Sell 2× ATM call
- Buy ATM+2 strikes call

## Summary

Buy 1 ITM, sell 2 ATM, buy 1 OTM call — a cheap, defined-risk bet that the price pins the middle strike.

## When to use it

A strong view the price expires near a specific level. Very cheap, low-probability/high-payoff.

## Profit & loss

- **Max profit:** At the middle strike: (wing width − net debit).
- **Max loss:** Limited to the small net debit.

## Net Greeks profile

Short gamma/vega near the body, positive theta if the price is at the middle.

## Margin

Light (net debit paid).

## Common mistakes

- Expecting it to pay off before expiry (value concentrates at expiry).

## India example

Buy a NIFTY call butterfly centred on the max-pain strike near expiry.

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**Build it live in the [DeltaDesk Strategy Lab](https://learn-derivatives.tapetide.com/tools/strategy-lab)** — tune strikes and see payoff + net Greeks update instantly.

*Educational content only — nothing here is investment advice. Derivatives carry significant risk of loss. Tapetide is not a SEBI-registered research analyst or investment adviser.*