How are ALL 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 ALL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.70%), the computed maximum profit is $637.39 per contract and the computed maximum loss is -$302.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ALL butterfly?

The breakeven for the ALL butterfly priced on this page is roughly $213.03 and $226.98 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 ALL market-implied 1-standard-deviation expected move is approximately 6.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ALL implied volatility affect this butterfly?

ALL ATM IV is at 22.70% with IV rank near 35.57%, 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.

ALL Butterfly Strategy

ALL (The Allstate Corporation), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. The company operates through Allstate Protection; Protection Services; Allstate Health and Benefits; and Run-off Property-Liability segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; specialty auto products, including motorcycle, trailer, motor home, and off-road vehicle insurance; other personal lines products, such as renter, condominium, landlord, boat, umbrella, and manufactured home and stand-alone scheduled personal property; and commercial lines products under the Allstate and Encompass brand names. The Protection Services segment provides consumer product protection plans and related technical support for mobile phones, consumer electronics, furniture, and appliances; finance and insurance products, including vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel, and paint and fabric protection; roadside assistance; device and mobile data collection services; data and analytic solutions using automotive telematics information; and identity protection services. This segment offers its products under various brands including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside Services, Arity, and Allstate Identity Protection. The Allstate Health and Benefits provides life, accident, critical illness, short-term disability, and other health insurance products.

ALL (The Allstate Corporation) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $55.48B, a trailing P/E of 4.60, a beta of 0.21 versus the broader market, a 52-week range of 188.08-222.23, average daily share volume of 1.5M, a public-listing history dating back to 1993, approximately 55K full-time employees. These structural characteristics shape how ALL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.21 indicates ALL 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 4.60 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ALL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ALL?

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 ALL snapshot

As of May 15, 2026, spot at $217.32, ATM IV 22.70%, IV rank 35.57%, expected move 6.51%. The butterfly on ALL 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 34-day expiry.

Why this butterfly structure on ALL specifically: ALL IV at 22.70% 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 6.51% (roughly $14.14 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALL expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALL should anchor to the underlying notional of $217.32 per share and to the trader's directional view on ALL stock.

ALL butterfly setup

The ALL 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 ALL near $217.32, the first option leg uses a $210.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALL chain at a 34-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 ALL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$210.00	$10.40
Sell 2	Call	$220.00	$4.55
Buy 1	Call	$230.00	$1.73

ALL butterfly risk and reward

Net Premium / Debit: -$302.50
Max Profit (per contract): $637.39
Max Loss (per contract): -$302.50
Breakeven(s): $213.03, $226.98
Risk / Reward Ratio: 2.107

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.

ALL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ALL. 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%	-$302.50
$48.06	-77.9%	-$302.50
$96.11	-55.8%	-$302.50
$144.16	-33.7%	-$302.50
$192.21	-11.6%	-$302.50
$240.26	+10.6%	-$302.50
$288.31	+32.7%	-$302.50
$336.36	+54.8%	-$302.50
$384.41	+76.9%	-$302.50
$432.46	+99.0%	-$302.50

When traders use butterfly on ALL

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

ALL thesis for this butterfly

The market-implied 1-standard-deviation range for ALL extends from approximately $203.18 on the downside to $231.46 on the upside. A ALL long call butterfly is a pinning play: it pays maximum at the middle strike if ALL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ALL IV rank near 35.57% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ALL should anchor more to the directional view and the expected-move geometry. As a Financial Services name, ALL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALL-specific events.

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

Frequently asked questions

What is a butterfly on ALL?: A butterfly on ALL is the butterfly strategy applied to ALL (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 ALL stock trading near $217.32, the strikes shown on this page are snapped to the nearest listed ALL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ALL 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 ALL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.70%), the computed maximum profit is $637.39 per contract and the computed maximum loss is -$302.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ALL butterfly?: The breakeven for the ALL butterfly priced on this page is roughly $213.03 and $226.98 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 ALL market-implied 1-standard-deviation expected move is approximately 6.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ALL?: Butterflies on ALL are pinning bets - traders use them when they expect ALL 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 ALL implied volatility affect this butterfly?: ALL ATM IV is at 22.70% with IV rank near 35.57%, 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.