How are ALGT 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 ALGT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 65.40%), the computed maximum profit is $480.75 per contract and the computed maximum loss is $5.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ALGT butterfly?

The breakeven for the ALGT butterfly priced on this page is no defined breakeven on the modeled curve 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 ALGT market-implied 1-standard-deviation expected move is approximately 18.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ALGT implied volatility affect this butterfly?

ALGT ATM IV is at 65.40% with IV rank near 51.72%, 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.

ALGT Butterfly Strategy

ALGT (Allegiant Travel Company), in the Industrials sector, (Airlines, Airports & Air Services industry), listed on NASDAQ.

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 14, 2022, it operated a fleet of 110 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course.

ALGT (Allegiant Travel Company) trades in the Industrials sector, specifically Airlines, Airports & Air Services, with a market capitalization of approximately $1.39B, a beta of 1.50 versus the broader market, a 52-week range of 42.56-118, average daily share volume of 493K, a public-listing history dating back to 2006, approximately 6K full-time employees. These structural characteristics shape how ALGT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.50 indicates ALGT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ALGT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ALGT?

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 ALGT snapshot

As of May 15, 2026, spot at $75.13, ATM IV 65.40%, IV rank 51.72%, expected move 18.75%. The butterfly on ALGT 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 63-day expiry.

Why this butterfly structure on ALGT specifically: ALGT IV at 65.40% 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 18.75% (roughly $14.09 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALGT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALGT should anchor to the underlying notional of $75.13 per share and to the trader's directional view on ALGT stock.

ALGT butterfly setup

The ALGT 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 ALGT near $75.13, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALGT chain at a 63-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 ALGT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$70.00	$11.35
Sell 2	Call	$75.00	$8.90
Buy 1	Call	$80.00	$6.40

ALGT butterfly risk and reward

Net Premium / Debit: +$5.00
Max Profit (per contract): $480.75
Max Loss (per contract): $5.00
Breakeven(s): None on modeled curve
Risk / Reward Ratio: 96.150

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.

ALGT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ALGT. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$5.00
$16.62	-77.9%	+$5.00
$33.23	-55.8%	+$5.00
$49.84	-33.7%	+$5.00
$66.45	-11.6%	+$5.00
$83.06	+10.6%	+$5.00
$99.67	+32.7%	+$5.00
$116.28	+54.8%	+$5.00
$132.89	+76.9%	+$5.00
$149.50	+99.0%	+$5.00

When traders use butterfly on ALGT

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

ALGT thesis for this butterfly

The market-implied 1-standard-deviation range for ALGT extends from approximately $61.04 on the downside to $89.22 on the upside. A ALGT long call butterfly is a pinning play: it pays maximum at the middle strike if ALGT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ALGT IV rank near 51.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ALGT should anchor more to the directional view and the expected-move geometry. As a Industrials name, ALGT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALGT-specific events.

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

Frequently asked questions

What is a butterfly on ALGT?: A butterfly on ALGT is the butterfly strategy applied to ALGT (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 ALGT stock trading near $75.13, the strikes shown on this page are snapped to the nearest listed ALGT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ALGT 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 ALGT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 65.40%), the computed maximum profit is $480.75 per contract and the computed maximum loss is $5.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ALGT butterfly?: The breakeven for the ALGT butterfly priced on this page is no defined breakeven on the modeled curve 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 ALGT market-implied 1-standard-deviation expected move is approximately 18.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ALGT?: Butterflies on ALGT are pinning bets - traders use them when they expect ALGT 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 ALGT implied volatility affect this butterfly?: ALGT ATM IV is at 65.40% with IV rank near 51.72%, 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.