"How to Trade Broken Wing Butterflies in Singapore ?"
Most investors think you need to take big risks to earn big rewards. But sophisticated traders — especially high-income professionals — understand that you can design trades where risk stays low, reward potential stays high, and even one entire side of the trade carries zero loss.
That’s the power of the Broken Wing Butterfly, one of the most efficient options trading strategies for directional and income-driven setups.
It’s perfect for traders who want smart positioning without risking large capital.
💡 What Is a Broken Wing Butterfly?
A Broken Wing Butterfly (BWB) is an adaptation of the traditional butterfly spread — but with a twist.
Instead of having strikes evenly spaced, you “break” one side of the wing, meaning:
The risk on one side becomes very small
You can even structure the trade for a potential credit
You maintain a safe, limited-risk profile
You still get a strong profit zone if the stock lands near your target
This makes it one of the most flexible and forgiving options strategies for high-income investors who prefer defined-risk setups.
💵 Real ~$1,000 Example ( $SPDR S&P 500 ETF Trust(SPY)$ )
ComponentDetailsUnderlyingSPY (S&P500 ETF)Current PriceUSD 500Buy495 Put @ USD 7Sell2 × 490 Puts @ USD 4 eachBuy480 Put @ USD 2Net Cost≈ USD 1 per share = USD 100 per spread
You open 10 spreads, risking ~$1,000 total.
📊 How the Broken Wing Butterfly Performs
Scenario 1 — SPY Moves Toward $490 (Your Target Zone)
This is the ideal outcome. Your middle short strikes decay the fastest, creating a profit peak. ✔ Potential return of 200%–300% on controlled risk.
Scenario 2 — SPY Drops Hard Below $480
Your long wings protect you. ✔ Loss capped at your initial trade size (~$1,000). ✔ Zero chance of catastrophic downside.
Scenario 3 — SPY Moves Upward Away From the Structure
Because of the broken wing design, the upside loss is small and often near breakeven. ✔ Many BWBs are even structured for zero loss on the upside.
That’s what makes this strategy special — you can design it so one entire direction carries almost no risk at all.
⚙️ Why High-Income Investors Use Broken Wing Butterflies
✔ Extremely low risk for the reward potential ✔ Profit zone can be very wide ✔ Can often be placed for a credit or near zero cost ✔ Much safer than buying naked puts or calls ✔ Perfect for traders who want precision without overexposure ✔ Teaches discipline — a key part of the Best Options Trading Course in Singapore for Millionaires
The BWB is ideal for investors who appreciate intelligent, structured trading over high-risk speculation.
**Successful investors don’t just take trades.
They engineer them.**
The Broken Wing Butterfly is one of the most elegant engineered trades in options.
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