Strategy lesson · Custom · custom
Custom 3 Legs Explained
Three-leg builder for butterflies, ratio spreads, and other non-standard shapes.
How a Custom 3 Legs is built
Three option legs with independent parameters.
- Leg 1: buy call · strike template 90 · premium ~12 · 1 contract(s)
- Leg 2: sell call · strike template 100 · premium ~5.5 · 2 contract(s)
- Leg 3: buy call · strike template 110 · premium ~2 · 1 contract(s)
Risk & reward snapshot
| Market bias | custom |
|---|---|
| Max profit | Structure-dependent. |
| Max loss | Structure-dependent. |
| Breakeven | Use the P/L chart. |
Figures are conceptual for the classic structure. Your actual premiums, strikes, and fees change the numbers — confirm on the calculator.
When traders use it
- Butterflies, ratios, and broken-wing variants.
Key risks
- Complex assignment and commission drag.
Practical tips
- Verify each leg’s side/type twice before trusting max loss.
Practice on the calculator
- Open the Custom 3 Legs calculator.
- Load a symbol and option chain; fill realistic mid premiums.
- Review max profit, max loss, breakevens, and the date × price heatmap.
- Change strikes and DTE to see how risk shape shifts.
FAQ
What is a Custom 3 Legs?
Three-leg builder for butterflies, ratio spreads, and other non-standard shapes.
What is the max loss on a Custom 3 Legs?
Structure-dependent.
When should I use a Custom 3 Legs?
Butterflies, ratios, and broken-wing variants.