Multi-leg strategies
What is the difference between a Call Butterfly and a Put Butterfly spread?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
A Call Butterfly uses only call options while a Put Butterfly uses only put options, but both have symmetric risk-reward profiles and are typically priced similarly due to put-call parity.
How it works
The choice between them is usually driven by liquidity, bid-ask spreads, or tax/assignment considerations rather than differing profit potential, since both target the same center-strike price target.
An example
A Call Butterfly built on 95-100-105 calls and a Put Butterfly built on the same 95-100-105 puts have theoretically equivalent payoff diagrams when priced fairly under parity.
Risk & limitations
Real-world pricing can diverge due to early assignment risk on puts (dividends) or wider spreads on less-liquid contracts, so theoretical equivalence doesn't always hold exactly.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.