Long Put Butterfly Spread

So here is our setup with PEs –

• Buy 1 Put option (below short strike) ~ Buy 9750 PE at 19.35
• Sell 2 Put options ~ Sell 9850 PE at 42.6
• Buy 1 Put option (above short strike) ~ Buy 9950 PE at 90

Debit Paid = 19.35 + 90 – 42.6 – 42.6= 24.15

Upper Breakeven:
Higher Long Option Strike – Debit Paid = 9950 – 24.15 = 9925.85

Lower Breakeven:
Lower Long Option Strike + Debit Paid = 9750 + 24.15 = 9774.15

Max Profit
= The distance between the short strike and long strike – Debit Paid
= 9950 – 9850 – 24.15
= 75.85

^[1] The term “Long” comes from the fact that it mostly generates a Debit Spread.
^[2]Although it looks like it should be neutral. But, A long butterfly will tend to act like a short straddle, while a short butterfly will tend to act like a long straddle but the risk is limited in this case.