How are ALB 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 ALB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 59.68%), the computed maximum profit is $452.47 per contract and the computed maximum loss is -$42.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ALB butterfly?

The breakeven for the ALB butterfly priced on this page is roughly $130.19 and $139.78 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 ALB market-implied 1-standard-deviation expected move is approximately 17.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ALB implied volatility affect this butterfly?

ALB ATM IV is at 59.68% with IV rank near 43.41%, 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.

ALB Butterfly Strategy

ALB (Albemarle Corporation), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NYSE.

Albemarle Corporation stands as a global innovator, producing and distributing a diverse portfolio of engineered specialty chemicals. Its business operations are divided into three principal segments: Lithium, Bromine, and Catalysts. The Lithium division supplies a variety of lithium compounds, including lithium carbonate, hydroxide, and chloride, alongside critical reagents like butyllithium. These materials are vital for manufacturing lithium-ion batteries found in electric vehicles and consumer electronics, as well as for high-performance greases, thermoplastic elastomers used in tires and plastics, and as catalysts for chemical reactions, organic synthesis in areas like steroid chemistry, vitamins, and the pharmaceutical industry. This segment also delivers cesium products for chemical and pharmaceutical applications, zirconium, barium, and titanium for pyrotechnic devices such as airbag initiators, offers expert technical services for the safe handling of reactive lithium products, and provides recycling solutions for lithium-containing by-products. The Bromine segment focuses on bromine and bromine-based fire safety compounds.

ALB (Albemarle Corporation) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $15.77B, a beta of 1.31 versus the broader market, a 52-week range of 60.64-221, average daily share volume of 2.2M, a public-listing history dating back to 1994, approximately 8K full-time employees. These structural characteristics shape how ALB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.31 indicates ALB has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ALB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ALB?

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 ALB snapshot

As of June 30, 2026, spot at $134.27, ATM IV 59.68%, IV rank 43.41%, expected move 17.11%. The butterfly on ALB 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 31-day expiry.

Why this butterfly structure on ALB specifically: ALB IV at 59.68% 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 17.11% (roughly $22.97 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALB expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALB should anchor to the underlying notional of $134.27 per share and to the trader's directional view on ALB stock.

ALB butterfly setup

The ALB 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 ALB near $134.27, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALB chain at a 31-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 ALB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$130.00	$12.15
Sell 2	Call	$135.00	$9.60
Buy 1	Call	$140.00	$7.48

ALB butterfly risk and reward

Net Premium / Debit: -$42.50
Max Profit (per contract): $452.47
Max Loss (per contract): -$42.50
Breakeven(s): $130.19, $139.78
Risk / Reward Ratio: 10.646

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.

ALB butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ALB. 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%	-$42.50
$29.70	-77.9%	-$42.50
$59.38	-55.8%	-$42.50
$89.07	-33.7%	-$42.50
$118.76	-11.6%	-$42.50
$148.44	+10.6%	-$42.50
$178.13	+32.7%	-$42.50
$207.82	+54.8%	-$42.50
$237.50	+76.9%	-$42.50
$267.19	+99.0%	-$42.50

When traders use butterfly on ALB

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

ALB thesis for this butterfly

The market-implied 1-standard-deviation range for ALB extends from approximately $111.30 on the downside to $157.24 on the upside. A ALB long call butterfly is a pinning play: it pays maximum at the middle strike if ALB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ALB IV rank near 43.41% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ALB should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, ALB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALB-specific events.

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

Frequently asked questions

What is a butterfly on ALB?: A butterfly on ALB is the butterfly strategy applied to ALB (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 ALB stock trading near $134.27, the strikes shown on this page are snapped to the nearest listed ALB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ALB 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 ALB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 59.68%), the computed maximum profit is $452.47 per contract and the computed maximum loss is -$42.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ALB butterfly?: The breakeven for the ALB butterfly priced on this page is roughly $130.19 and $139.78 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 ALB market-implied 1-standard-deviation expected move is approximately 17.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ALB?: Butterflies on ALB are pinning bets - traders use them when they expect ALB 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 ALB implied volatility affect this butterfly?: ALB ATM IV is at 59.68% with IV rank near 43.41%, 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.