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Define: Call Broken Wing Butterfly Spread
Call Broken Wing Butterfly Spread is a butterfly spread using only call options and buys out of the money call options that are further away from the middle strike price than a usual butterfly spread.
Such an adjustment transfers the risk to downside totally to the upside resulting in a butterfly spread that makes no loss if the stock breaks out downwards but makes twice the usual loss when the stock breaks out upwards. Call Broken Wing Butterfly Spreads are thus most useful if a stock is expected to be stagnant and if it would break out, it would likely be downwards.
Read the full tutorial on Call Broken Wing Butterfly Spread.