How are AGX butterfly max profit and max loss calculated?

Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the AGX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 72.60%), the computed maximum profit is $3,536.68 per contract and the computed maximum loss is -$430.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AGX butterfly?

The breakeven for the AGX butterfly priced on this page is roughly $754.20 and $825.70 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AGX market-implied 1-standard-deviation expected move is approximately 20.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AGX implied volatility affect this butterfly?

AGX ATM IV is at 72.60% with IV rank near 31.60%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

AGX Butterfly Strategy

AGX (Argan, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.

Argan, Inc., operating through its various subsidiaries, offers a comprehensive suite of services to the power generation and renewable energy sectors. These services span engineering, procurement, construction (EPC), commissioning, operations management, maintenance, project development, and technical and consulting support. The company is structured into three main operating divisions: 1. Power Industry Services: This segment specializes in delivering EPC solutions for alternative energy projects, such as biomass plants, wind farms, and solar fields. It also provides design, construction, project management, start-up, and ongoing operation services for power generation facilities, with a portfolio that includes projects accounting for approximately 15 gigawatts of power-generating capacity. Its client base includes independent power project developers, public utilities, power plant equipment suppliers, and other energy plant construction companies. 2.

AGX (Argan, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $10.73B, a trailing P/E of 66.25, a beta of 0.59 versus the broader market, a 52-week range of 196.9-791.38, average daily share volume of 377K, a public-listing history dating back to 1995, approximately 2K full-time employees. These structural characteristics shape how AGX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.59 indicates AGX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 66.25 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. AGX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AGX?

A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.

Current AGX snapshot

As of June 30, 2026, spot at $793.65, ATM IV 72.60%, IV rank 31.60%, expected move 20.81%. The butterfly on AGX below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.

Why this butterfly structure on AGX specifically: AGX IV at 72.60% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 20.81% (roughly $165.19 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGX should anchor to the underlying notional of $793.65 per share and to the trader's directional view on AGX stock.

AGX butterfly setup

The AGX butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AGX near $793.65, the first option leg uses a $750.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGX chain at a 17-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AGX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$750.00	$72.65
Sell 2	Call	$790.00	$51.00
Buy 1	Call	$830.00	$33.65

AGX butterfly risk and reward

Net Premium / Debit: -$430.00
Max Profit (per contract): $3,536.68
Max Loss (per contract): -$430.00
Breakeven(s): $754.20, $825.70
Risk / Reward Ratio: 8.225

Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.

AGX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AGX. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$430.00
$175.49	-77.9%	-$430.00
$350.97	-55.8%	-$430.00
$526.45	-33.7%	-$430.00
$701.93	-11.6%	-$430.00
$877.41	+10.6%	-$430.00
$1,052.89	+32.7%	-$430.00
$1,228.37	+54.8%	-$430.00
$1,403.84	+76.9%	-$430.00
$1,579.32	+99.0%	-$430.00

When traders use butterfly on AGX

Butterflies on AGX are pinning bets - traders use them when they expect AGX to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.

AGX thesis for this butterfly

The market-implied 1-standard-deviation range for AGX extends from approximately $628.46 on the downside to $958.84 on the upside. A AGX long call butterfly is a pinning play: it pays maximum at the middle strike if AGX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AGX IV rank near 31.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on AGX should anchor more to the directional view and the expected-move geometry. As a Industrials name, AGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGX-specific events.

AGX butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AGX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGX alongside the broader basket even when AGX-specific fundamentals are unchanged. Always rebuild the position from current AGX chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on AGX?: A butterfly on AGX is the butterfly strategy applied to AGX (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With AGX stock trading near $793.65, the strikes shown on this page are snapped to the nearest listed AGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AGX butterfly max profit and max loss calculated?: Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the AGX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 72.60%), the computed maximum profit is $3,536.68 per contract and the computed maximum loss is -$430.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AGX butterfly?: The breakeven for the AGX butterfly priced on this page is roughly $754.20 and $825.70 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AGX market-implied 1-standard-deviation expected move is approximately 20.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AGX?: Butterflies on AGX are pinning bets - traders use them when they expect AGX to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
How does current AGX implied volatility affect this butterfly?: AGX ATM IV is at 72.60% with IV rank near 31.60%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.