"How to Trade a Broken Wing Butterfly in Singapore ?"
If you want a strategy that gives you upside potential while keeping your risk small and defined, the Broken Wing Butterfly is one of the most underrated setups in options trading. This structure lets you profit from a controlled move in one direction — while risking very little capital — perfect for high-income traders in Singapore who want smart, asymmetric trades.
Quick question for you 👇 Would you take a trade where the risk is small, but the reward is skewed in your favour?
What Is a Broken Wing Butterfly?
You combine:
1️⃣ Buy one option 2️⃣ Sell two options 3️⃣ Buy another option — but with uneven strikes
The “broken wing” simply means the distances between strikes are not equal.
This creates a structure where:
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Risk is limited
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Reward is tilted to one side
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You don’t need the stock to be perfect
It’s a smarter version of a regular butterfly.
Why Traders Use It
✔️ Limited risk, defined upfront ✔️ Better reward-to-risk than a standard butterfly ✔️ Works well in calm or slightly trending markets ✔️ Uses ~$1,000 per trade ✔️ Less stress than guessing direction aggressively
This is the “tilt the odds slightly in your favour” strategy.
Real ~$1,000 Example (SPY)
SPY is trading at $500.
A trader might:
1️⃣ Buy a call below the price 2️⃣ Sell two calls near the expected level 3️⃣ Buy another call further out
The total cost is small — often $2–$4, scaled to ~$1,000 sizing.
You don’t need SPY to explode. You just need it to behave normally.
How You Profit
1️⃣ SPY moves toward your middle strike
Your sold options decay fast. ✔️ This is the best-case scenario.
2️⃣ SPY moves slightly beyond it
You can still be profitable. ✔️ The “broken wing” gives you breathing room.
3️⃣ SPY moves hard against you
Your loss is capped. ✔️ You already knew the worst case before entering.
This is why professionals like asymmetric trades — no surprises.
Why Singapore Professionals Use This Strategy
✔️ Smarter than guessing direction ✔️ Excellent reward-to-risk profile ✔️ Calm, logical setup ✔️ Fits perfectly with ~$1,000 sizing ✔️ Often used when markets feel “stuck”
My Honest Take
Most traders want perfect trades.
Professionals prefer forgiving trades.
The Broken Wing Butterfly isn’t flashy — but it’s built for real markets, not textbook ones.
Let me ask you 👇
Would you rather trade: A) Perfect predictions B) Forgiving structures
Comment A or B — curious to see how you think.
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- popzi·12-16 23:28[666] B all day. Forgiving trades survive market madness betterLikeReport
- Cory2·12-17 07:14Both? 😬[LOL]1Report
