How do you adjust a butterfly into a broken wing?

Widen one wing relative to the other. Moving the far wing further from the body removes the loss on that side and can turn the trade into a credit, so the position profits if the stock pins the body or drifts in the favorable direction. The trade-off is a less symmetric, lower peak payoff.

When should you adjust a broken wing butterfly?

Adjust when the stock approaches a short strike (the body), when you want to remove risk on one side, or when you can roll the untested wing in for additional credit. If the body is breached with time left, roll the whole structure out for a credit rather than taking max loss.

Can you roll a broken wing butterfly?

Yes. Roll the untested wing closer to the body to collect extra credit and shrink risk, or roll the entire position out one expiration cycle for a net credit when it is tested. The rule is never to roll for a debit — that adds cost to a low-probability trade.

What is the max loss on a broken wing butterfly?

It is the width of the narrower wing minus any credit received, on the side that still carries risk. Because one wing is widened to remove risk on the other side, the defined max loss sits entirely on a single side — which is exactly what makes the broken wing easier to manage than a symmetric fly.

Broken Wing Butterfly Adjustments: A Printable Cheat Sheet

The complete broken wing butterfly adjustment playbook on one page: when to skew, how to roll the wings, repairing a tested side, and the exit rules that keep a low-probability trade defined.

6 min read · Updated 2026-06-12

Last Updated: June 12, 2026

6 min read

By: Ryan Silk & Lawrence Polatchek

Fact-checked & Up-to-date

Written by

ApexVol Research Team

Quantitative options research

All calculations use live ORATS institutional data — the same source used by professional volatility desks.

Technical reviewer

Ryan Silk, ApexVol Founder

Reviewed for technical accuracy

10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.

This guide is updated as market conditions and ORATS data change. Last revised 2026-06-12. How we research →

Broken Wing Butterfly Adjustment

A broken wing butterfly adjustment skews the two wings of a butterfly to different widths so the structure takes in a credit or removes the loss on one side. The most common adjustments are widening the far wing to eliminate downside risk, rolling the untested wing in for extra credit, and rolling the whole position out in time when tested.

Print it, pin it, and stop guessing at the trade desk when a fly gets tested.

Quick answer

Skew the far wing out to remove one side's risk and take in a credit. Roll the untested wing closer for extra credit. Repair a tested side by rolling out in time, never for a debit. Close at a defined profit or your max-loss limit — a broken wing is still a defined-risk trade.

The Core Idea

A standard butterfly risks a small debit on both sides of the body. A broken wing shifts the far wing further out so that one side carries no loss — often for a net credit. You trade a perfectly symmetric peak payoff for a higher-probability, easier-to-manage trade. Map it first on the butterfly calculator.

The Adjustment Table

Situation	Adjustment	Why
Opening the trade	Widen the far wing for a credit / zero cost	Removes one side's risk before you ever need to defend it
Stock drifts toward the body (favorable)	Hold — let it pin	Peak payoff is at the body
Untested wing far OTM	Roll it in closer for extra credit	Collects premium and narrows risk
Body breached, time remaining	Roll the whole fly out one cycle for a credit	Buys time without adding cost
Loss hits your limit	Close	A broken wing is still defined risk — respect the cap

The Four Rules

1. Skew for a credit. Widen the far wing so one side has no loss. Ideally the whole trade is opened for a credit.
2. Roll the untested wing in. When one side is safe, pull the other closer to collect premium and shrink the defined risk.
3. Never roll for a debit. Adding cost to a low-probability structure defeats the purpose. Roll out only for a net credit.
4. Respect the cap. Close at your profit target or max-loss limit. The broken wing makes the trade defined — let it stay defined.

Win-rate and payoff context for the standard vs broken-wing fly comes from our butterfly backtest (illustrative).

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