These three structures change two different features: wing width and the location of the short strikes. A standard butterfly has equal wings and one peak. A broken wing makes the tails unequal. A broken heart separates the shorts to create a flat peak.
What Are You Choosing Between?
First decide where the stock is expected to finish. Then compare how much loss is acceptable beyond each wing. Widening the maximum-profit zone can change both the entry premium and the worst tail loss. More room at the peak does not mean better protection everywhere.
The Main Differences
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| Compare | Standard Butterfly | Call Broken Wing Butterfly | Broken Heart Butterfly |
|---|---|---|---|
| Construction | Equal $5 wings give equal losses on the two tails. | A wider upper wing changes the upside tail risk. | Separate the short strikes to create a flat peak; keep unequal wings. |
| Example entry | $100 net debit | $50 net credit | $75 net debit |
| Maximum profit | $400 | $550 | $425 |
| Maximum loss | $100 | $450 | $575 |
| Breakeven price | $96; $104 | $105.50 | $95.75; $109.25 |
A Practical Example
The standard call butterfly uses $95/$100/$105. The broken wing moves the highest call to $110. The broken heart uses $95/$100/$105/$115, with its short calls separated. In these quotes the broken wing receives a credit, but the broken heart costs a debit. All are defined-risk at expiration while kept intact.
XYZ is at $100 when the option trades are entered. Premiums below are per share; each option contract covers 100 shares. Each column shows one complete position, not an equal-capital allocation. Prices are hypothetical and exclude commissions, taxes, dividends, financing costs and early-assignment cashflows.
| Position | Example legs |
|---|---|
| Standard Butterfly | Buy 1 $95 call, 30 days, at $8 Sell 2 $100 calls, 30 days, at $5 Buy 1 $105 call, 30 days, at $3 |
| Call Broken Wing Butterfly | Buy 1 $95 call, 30 days, at $8 Sell 2 $100 calls, 30 days, at $5 Buy 1 $110 call, 30 days, at $1.50 |
| Broken Heart Butterfly | Buy 1 $95 call, 30 days, at $8 Sell 1 $100 call, 30 days, at $5 Sell 1 $105 call, 30 days, at $3 Buy 1 $115 call, 30 days, at $0.75 |
Comparing the Expiration Payoffs
- Standard Butterfly
- Call Broken Wing Butterfly
- Broken Heart Butterfly
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| XYZ price | Standard Butterfly | Call Broken Wing Butterfly | Broken Heart Butterfly |
|---|---|---|---|
| $80 | −$100 | $50 | −$75 |
| $95 | −$100 | $50 | −$75 |
| $100 | $400 | $550 | $425 |
| $105 | −$100 | $50 | $425 |
| $120 | −$100 | −$450 | −$575 |
What to Watch For
The broken heart is an unequal-wing Condor variation, not a separate source of protection. Credit entry is a price condition, not a guaranteed feature of either named variation. Check the actual tails rather than relying on the word butterfly.
Before expiration, time value and implied volatility can change a position’s market value. Short options also create exercise and assignment obligations. Review the full strategy guides for position management and settlement details.
Explore the Strategies
- Butterfly Spread
- Long Put Butterfly
- Call Broken Wing Butterfly
- Put Broken Wing Butterfly
- Broken Heart Butterfly
Try the examples: