EUR/USD
Bearish Butterfly Strategy Summary
- **Structure**: Buy 1 ITM Call, Sell 2 ATM Calls, Buy 1 OTM Call
- **Objective**: Profit from a decline in the underlying asset's price.
- **Max Profit**: At the middle strike price at expiration.
- **Max Loss**: Limited to the net premium paid.
- **Breakeven Points**:
- Lower: Lower Strike + Net Premium Paid
- Upper: Upper Strike - Net Premium Paid
- **Market Outlook**: Best for expecting a moderate decline and low volatility.
- **Advantages**: Limited risk, potential high reward.
- **Disadvantages**: Requires precise price prediction, complex management.
- **Structure**: Buy 1 ITM Call, Sell 2 ATM Calls, Buy 1 OTM Call
- **Objective**: Profit from a decline in the underlying asset's price.
- **Max Profit**: At the middle strike price at expiration.
- **Max Loss**: Limited to the net premium paid.
- **Breakeven Points**:
- Lower: Lower Strike + Net Premium Paid
- Upper: Upper Strike - Net Premium Paid
- **Market Outlook**: Best for expecting a moderate decline and low volatility.
- **Advantages**: Limited risk, potential high reward.
- **Disadvantages**: Requires precise price prediction, complex management.
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