Skip-Strike Call Butterfly
Also known as: Skip-Strike Call Fly, 1-2-Skip Call Fly, Broken Wing Call Fly
Moderately bullish — want the high reward of a butterfly near the middle strike while benefiting if the stock rallies slightly past the short strikes instead of losing immediately
Risk Profile at a Glance
How to Construct the Skip-Strike Call Butterfly
- 1.Buy 1 call at strike A
- 2.Sell 2 calls at strike B
- 3.Buy 1 call at strike C (C skips one strike above B — wider upper wing)
- 4.Small debit or small credit
Understanding the Skip-Strike Call Butterfly
The skip-strike call butterfly modifies the standard butterfly by skipping one strike between the short strikes and the upper long call, creating a wider upper wing. This asymmetry shifts the profit zone higher and reduces the loss if the stock rallies past the short strikes. Unlike a standard butterfly which loses immediately above the upper wing, the skip-strike version has a zone of small profit or near-breakeven if the stock runs through the short strikes to the upper long. It is sometimes called a "broken wing" variant — though distinct from the BWB — because it skips a strike rather than simply widening.
The skip-strike call fly is popular for moderately bullish trades where you want the butterfly profit zone centered above the current price with some forgiveness if the stock runs further than expected. In the EdgeOS context, it suits bull count 2–4 setups where the stock has confirmed a T1 ignition and you expect steady upward progress toward a target..
When to Use It — EdgeOS Signal Integration
- ✓Ideal when SCTR > 9 and EdgeOS bull count = 1 (fresh ignition trigger)
- ✓Extension score below 0.8 (Tight or Mod) — stock has room to run
- ✓Confirmed or fluid bullish trend — EMA alignment supports the direction
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Frequently Asked Questions
What is the Skip-Strike Call Butterfly options strategy?
The skip-strike call butterfly modifies the standard butterfly by skipping one strike between the short strikes and the upper long call, creating a wider upper wing. This asymmetry shifts the profit zone higher and reduces the loss if the stock rallies past the short strikes.
When should I use the Skip-Strike Call Butterfly?
Moderately bullish — want the high reward of a butterfly near the middle strike while benefiting if the stock rallies slightly past the short strikes instead of losing immediately
What is the maximum loss on the Skip-Strike Call Butterfly?
The maximum loss is fully defined at entry: the net debit paid (for debit strategies) or the spread width minus the credit received (for credit spreads). You can never lose more than this amount.
How does the Skip-Strike Call Butterfly compare to similar strategies?
The Skip-Strike Call Butterfly is a moderately bullish debit strategy. Compared to the Long Call Butterfly (neutral, debit), the Skip-Strike Call Butterfly has limited max risk and limited max reward. Your choice depends on your directional bias, IV environment, and risk tolerance. The TraderValue strategy comparison tool lets you see the exact payoff differences side by side.