A neutral option strategy (broadly a short butterfly) that is based on three legs involving selling a low strike call, buying two middle strike calls with the same strike, and buying a higher strike price. More specifically, the short call butterfly is made up solely of call options. It involves the purchase of two middle-strike at-the-money call options and the selling of one lower-strike in-the-money call option and one higher-strike out-of-the-money call option, all of the same expiration date and on the same underlying. Typically the distance between each pair of strike prices is equal for this strategy.

The maximum profit is limited to the net credit received for the option spread. The maximum loss is limited to the difference between the strike prices of the at-the-money calls and the in-the-money call, less the premium received on the short call options.

This strategy is advisable when an investor is neutral on market movement and bullish on market volatility.

The short call butterfly is also alternatively known as a call short butterfly.