How are AIT 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 AIT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.60%), the computed maximum profit is $1,385.64 per contract and the computed maximum loss is -$550.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AIT butterfly?

The breakeven for the AIT butterfly priced on this page is roughly $345.50 and $374.50 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AIT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AIT implied volatility affect this butterfly?

AIT ATM IV is at 24.60% with IV rank near 6.12%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

AIT Butterfly Strategy

AIT (Applied Industrial Technologies, Inc.), in the Industrials sector, (Industrial - Distribution industry), listed on NYSE.

Applied Industrial Technologies, Inc. (AIT) is a prominent distributor specializing in advanced solutions for industrial motion, power, control, and automation. Its operational footprint extends across North America, Australia, New Zealand, and Singapore. The company structures its operations into two main divisions: Service Center Based Distribution and Fluid Power & Flow Control. AIT's extensive product portfolio encompasses a wide range of industrial components and systems, including bearings, power transmission equipment, engineered fluid power systems, specialized flow control mechanisms, cutting-edge automation products, various industrial rubber items, linear motion components, and essential tools, safety gear, and oilfield provisions. Furthermore, it supplies motors, belting, drives, couplings, pumps, hydraulic and pneumatic parts, filtration products, valves, fittings, process instrumentation, actuators, and hoses, alongside other crucial supplies necessary for the general operational upkeep of customer machinery. Beyond product distribution, AIT offers robust service capabilities, including operating specialized fabricated rubber workshops and deploying field crews for the installation, modification, and repair of conveyor belts and rubber linings.

AIT (Applied Industrial Technologies, Inc.) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $13.02B, a trailing P/E of 32.74, a beta of 0.85 versus the broader market, a 52-week range of 238.34-363.59, average daily share volume of 269K, a public-listing history dating back to 1980, approximately 7K full-time employees. These structural characteristics shape how AIT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.85 places AIT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AIT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AIT?

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.

AIT snapshot

As of August 14, 2026, spot at $362.46, ATM IV 24.60%, IV rank 6.12%, expected move 7.05%. The butterfly on AIT below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this butterfly structure on AIT specifically: AIT IV at 24.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a AIT butterfly, with a market-implied 1-standard-deviation move of approximately 7.05% (roughly $25.56 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AIT expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIT should anchor to the underlying notional of $362.46 per share and to the trader's directional view on AIT stock.

AIT butterfly setup

The AIT butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AIT at $362.46 on that close, the first option leg uses a $340.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIT chain at a 35-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 AIT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$340.00	$26.75
Sell 2	Call	$360.00	$12.75
Buy 1	Call	$380.00	$4.25

AIT butterfly risk and reward

Net Premium / Debit: -$550.00
Max Profit (per contract): $1,385.64
Max Loss (per contract): -$550.00
Breakeven(s): $345.50, $374.50
Risk / Reward Ratio: 2.519

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.

AIT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AIT. 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%	-$550.00
$80.15	-77.9%	-$550.00
$160.29	-55.8%	-$550.00
$240.43	-33.7%	-$550.00
$320.57	-11.6%	-$550.00
$400.71	+10.6%	-$550.00
$480.85	+32.7%	-$550.00
$561.00	+54.8%	-$550.00
$641.14	+76.9%	-$550.00
$721.28	+99.0%	-$550.00

When traders use butterfly on AIT

Butterflies on AIT are pinning bets - traders use them when they expect AIT 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.

AIT thesis for this butterfly

The market-implied 1-standard-deviation range for AIT extends from approximately $336.90 on the downside to $388.02 on the upside. A AIT long call butterfly is a pinning play: it pays maximum at the middle strike if AIT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AIT IV rank near 6.12% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AIT at 24.60%. As a Industrials name, AIT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIT-specific events.

AIT 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. AIT positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIT alongside the broader basket even when AIT-specific fundamentals are unchanged. Always rebuild the position from current AIT chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on AIT?: A butterfly on AIT is the butterfly strategy applied to AIT (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 AIT stock at $362.46 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AIT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AIT 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 AIT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.60%), the computed maximum profit is $1,385.64 per contract and the computed maximum loss is -$550.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AIT butterfly?: The breakeven for the AIT butterfly priced on this page is roughly $345.50 and $374.50 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AIT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AIT?: Butterflies on AIT are pinning bets - traders use them when they expect AIT 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 AIT implied volatility affect this butterfly?: AIT ATM IV is at 24.60% with IV rank near 6.12%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.