1. What it is
Buy two calls and one put at the same strike and expiration.
2. Why use it
Buy movement exposure with extra weight on an upside move.
3. How the numbers work
View example
- Buy 2 × Call · Strike 100
- Buy 1 × Put · Strike 100
All option legs have the same expiration.
- Option premium paid
- 9
- Expiration breakeven
- 91 / 104.5
- Maximum expiration profit
- Theoretically unlimited
- Maximum expiration loss
- 9
- Underlying at expiration 100 → Loss 9
- Underlying at expiration 110 → Profit 11
4. How it changes
The bought options supply positive gamma and vega. Extra calls add bullish weight; theta is usually negative.
5. What to watch for
The whole premium can be lost near the common strike. Upside profit is uncapped, while downside profit stops growing once the underlying reaches zero.
Compare the extra upside participation with the extra premium. The asymmetric quantities matter as much as the common strike.
Examples use illustrative entry prices and amounts per underlying unit, before costs. Contract amounts require the contract multiplier. Expiration payoffs assume the illustrated legs remain intact; earlier position values and exercise or assignment outcomes can differ.