Butterfly Spread Trading Journal — Track NSE Butterflies in CernoQuant
Journal your NSE Butterfly Spread trades in CernoQuant. Track all 3 strikes, net debit/credit, and peak profit zone. behavioral analytics — free to start.
Strategy structure — legs
Buy lower strike option
ATM - X
Sell 2× middle strike options
ATM (or target price)
Buy upper strike option
ATM + X
P&L profile
Middle strike – lower strike – net debit (if underlying pins at middle strike at expiry)
Net debit paid (for debit butterfly) or net credit received risk (for credit butterfly)
Greeks at entry
Delta (Δ)
Near-zero (neutral directional bias)
Theta (Θ)
Positive — benefits from time passing if underlying stays near middle strike
Vega (ν)
Negative — IV spike hurts the sold middle strikes more than the bought wings
What to journal for every Butterfly Spread trade
- Net debit or credit and breakeven range
- Middle strike: why this level (support, resistance, expected pin)
- Wing width (distance between strikes)
- IV at entry (butterflies work best in moderate-IV, range-bound markets)
- Whether price pinned at middle strike or broke out of the profit zone
Common Butterfly Spread mistakes to avoid
- Too-narrow wings — profit zone is tiny; small moves cause full loss
- Entering butterfly too far OTM — low probability of hitting the sweet spot
- Not accounting for transaction costs — 4 legs means significant STT + brokerage
Frequently asked questions — Butterfly Spread
How do I journal a butterfly spread in CernoQuant?
Enter all 3 legs (or 4 if using 4-leg butterfly) tagged with the same strategy name. CernoQuant shows net debit and aggregate spread P&L for the butterfly unit.
What is the biggest cost risk in NSE butterfly spreads?
STT and brokerage across 4 legs can be significant. CernoQuant auto-calculates STT and brokerage per leg and shows your true net P&L after all costs — critical for butterfly profitability analysis.
When do butterfly spreads work best on NSE?
Butterflies work best when you expect the underlying to pin near a specific price at expiry. CernoQuant tracks your butterfly win rate by market regime and IV percentile at entry.
Related F&O tools
Other F&O strategies
Start journaling your Butterfly Spread trades today
Free during beta. Native Zerodha, Dhan, and Angel One sync. NSE F&O analytics built in.
Journal Butterfly Spread FreeEducational content only. Not investment advice. Options trading involves significant risk. CernoQuant is not a SEBI-registered investment advisor. Trading decisions are your sole responsibility.