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The call-based counterpart to a Broken Wing Put Butterfly: uneven wing widths that eliminate risk entirely on one side, in exchange for a defined loss on the other.

Like its put-based counterpart, this strategy deliberately uses unequal wing widths around the body strike. Placed correctly — narrow wing close to the body, wide wing further away — and funded for a net credit, the side with the narrower wing ends up with no possible loss at all, while the side with the wider wing keeps a real, but fully defined and capped, loss.

In this example, the near wing sits just 100 points below the body, while the far wing sits 600 points above it. This asymmetry — narrow wing on the side you want protected, wide wing on the side you'll accept defined risk — is what makes the credit structure, and the one-sided protection it creates, possible.

The shape here is the mirror image of the put version's — protection on the low side instead of the high side:

1. At or below the near wing — a flat, guaranteed profit. Because the position was opened for a net credit, there's no price below this point where the trade loses money.
2. Between the near wing and the body — profit grows as the underlying approaches the body from below, peaking exactly at the body strike.
3. At the body — maximum profit for the entire position.
4. Between the body and the breakeven — profit shrinks as the underlying rises further, crossing to a loss at the breakeven.
5. Between the breakeven and the far wing — loss grows as the underlying rises further still.
6. At or above the far wing — maximum loss, fully capped and flat, confirmed to stay flat no matter how much further the underlying rises.

A Broken Wing Call Butterfly built this way fits a view that's neutral to slightly bearish, with a specific willingness to accept defined risk only on the upside — the mirror image of the put version's neutral-to-slightly-bullish stance. Because it's opened for a net credit, there's no scenario where the underlying simply staying low or falling costs money.

Suppose Nifty is trading at 24,000 with a weekly expiry coming up, and lot size is 65. You're neutral to slightly bearish and want no risk if Nifty simply stays flat or falls.

1. Confirm the setup. You want a defined-risk bet centered near 24,000, but only on the downside risk being accepted, not the upside.
2. Buy 1 call at the 23,900 strike (near wing, only 100 points below the body) for a premium of 170.
3. Sell 2 calls at the 24,000 strike (the body), collecting a premium of 145 each — 290 total.
4. Buy 1 call at the 24,600 strike (far wing, 600 points above the body) for a premium of 24.
5. Calculate the net credit: 290 − 170 − 24 = 96 points, or ₹6,240 at this lot size.
6. Understand the guaranteed zone: at or below 23,900, you're never worse off than this ₹6,240 credit.
7. Understand the peak: at exactly 24,000, maximum profit of ₹12,740.
8. Understand the loss side: profit shrinks above the body, crosses to a loss at 24,196, and reaches a capped maximum loss of ₹26,260 at or above 24,600.
9. See how it resolves at expiry:
   • Nifty finishes at 23,500 (below the near wing) → flat profit of ₹6,240.
   • Nifty finishes at 24,000 (the body) → maximum profit of ₹12,740.
   • Nifty finishes at or above 24,600 → maximum loss of ₹26,260, capped no matter how much further it rises.

Quick reference for the same trade:

Based on the worked example above. Notice the payoff line never dips below zero on the left side of the chart, but does on the right — the mirror image of the Broken Wing Put Butterfly's shape. Move the cursor over the chart to see profit/loss at any price.

• The "no risk" side depends entirely on the credit structure. If the strikes or premiums don't actually produce a net credit, this strategy loses its defining property and behaves like an ordinary asymmetric butterfly with risk on both sides.
• Three separate legs, one at 2x size, mean higher execution cost than a simple two-leg spread.
• This is not a beginner strategy — the asymmetric shape is easy to misjudge without carefully working through the numbers.
• Index options on NSE are typically European-style and cash-settled — no early-assignment risk on the short legs.