Introductory Context
"An institutional masterclass on trading breakouts away from a central congestion strike using the Short Call Butterfly spread (Sell 1 Low Call + Buy 2 Mid Calls + Sell 1 High Call)."
Strategy Dossier & Metadata Taxonomy
Strategy: Short Call Butterfly (1-2-1 Credit Spread) | Market: NSE Options | Outlook: Breakout / Anti-Pinning | Profile: Defined Risk
1. The Core Principle in Plain English
A Short Call Butterfly is an anti-pinning strategy. You collect an upfront net credit. You make full profit if the underlying asset finishes either comfortably above the highest strike or below the lowest strike at expiry.