butterfly spread breakeven prices butterfly, before, called, figure

CPATrader

of the 2 breakeven prices for the butterfly spread, i cant figure out the 2nd…  2(mid-call) - Xlow-call - premiums,   for the life of me.  in my mind i feel like cheap call should appreciate until the price of the middle calls, before it gets called away.

invic

pretty evident if you look at the diagram too.
it is a 45 degree line from the strike to the 0 profit line one backward from Hi Strike and one forward from the Low Strike.

yuoska

wow, so basically   low strike + premiums and high strike - premiums.  u could have saved me 2 hours of my life

NakedPuts2011

They way I remember it:
BE1 +  X(L) + C(L) - 2C(MID) + C(H)  
Go other direction and flip signs
BE2 =  X(H)  - C(L) + 2C(MDI) - C(H)
This assumes H/L calls are even distance from MID.

Kapie

The high breakeven is just the high strike minus the cost of the butterfly.
High Strike - (high call price + low call price - 2*mid call price)