{"id":217705,"date":"2026-08-25T11:56:06","date_gmt":"2026-08-25T06:26:06","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217705"},"modified":"2026-08-25T11:56:08","modified_gmt":"2026-08-25T06:26:08","slug":"broken-wing-butterfly-nifty-50","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/broken-wing-butterfly-nifty-50\/","title":{"rendered":"Broken Wing Butterfly Nifty 50: Setup, Payoff and Risk Guide"},"content":{"rendered":"
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Nifty 50 level used in this article: Rs 24,216 (as of 24 Aug 2026). Next weekly (Tuesday) and monthly (last Tuesday of the month) expiry: 25 August 2026 (Tuesday). Lot size 65. Nifty 50 retained its weekly expiry slot on NSE under SEBI’s one weekly index per exchange rule; Bank Nifty, Nifty Financial Services, and Nifty Midcap Select lost their weekly contracts instead, in November 2024. Both weekly and monthly Nifty 50 contracts remain available.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

The broken wing butterfly Nifty 50 is a variation of the standard butterfly spread where the two wings are set at unequal distances from the centre strike, rather than the symmetric spacing used in a regular butterfly. With Nifty 50 at Rs 24,216, this asymmetry allows the broken wing butterfly Nifty 50 to be structured with little to no risk on one side of the trade, in exchange for a defined but potentially larger risk on the other side. The broken wing butterfly Nifty 50 may be considered by traders who want a butterfly like payoff shape but with a directional lean and reduced or eliminated risk on the side they consider less likely.<\/p>\n<\/div>\n

In a standard butterfly, the distance from the centre strike to each outer wing is equal, producing a symmetric payoff with defined risk on both sides. The this strategy widens one wing relative to the other, which changes the net premium (often converting a net debit into a net credit or reducing it) and shifts the risk so that one side of the trade has little or no loss potential while the other retains a defined, if larger, maximum loss.<\/p>\n

This makes the broken wing butterfly Nifty 50 a hybrid between a standard butterfly and a directional credit spread, useful when a trader has both a range bound view and a mild directional lean on which side of that range is less likely to be breached.<\/p>\n

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