How are APG 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 APG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.20%), the computed maximum profit is $223.50 per contract and the computed maximum loss is $25.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a APG butterfly?

The breakeven for the APG butterfly priced on this page is no defined breakeven on the modeled curve 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 APG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current APG implied volatility affect this butterfly?

APG ATM IV is at 36.20% with IV rank near 10.47%, 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.

APG Butterfly Strategy

APG (APi Group Corporation), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.

APi Group Corporation operates as a global enterprise offering vital safety, specialized infrastructure, and industrial services across North America, Europe, Australia, and the Asia-Pacific region. Its business activities are segmented into three primary divisions: Safety Services, Specialty Services, and Industrial Services. The Safety Services division delivers comprehensive safety solutions, with a particular focus on integrated occupancy systems. This encompasses the full lifecycle of services for fire protection, heating, ventilation, and air conditioning (HVAC), and entry systems, from their initial design and installation to ongoing inspection, monitoring, and maintenance. The Specialty Services segment is dedicated to the upkeep and enhancement of critical infrastructure, including subterranean electric, gas, water, sewer, and telecommunications networks, as well as specialized industrial facilities. This segment's offerings span a broad range of services, including engineering, design, fabrication, installation, and the modernization or upgrading of existing systems.

APG (APi Group Corporation) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $18.82B, a trailing P/E of 54.37, a beta of 1.61 versus the broader market, a 52-week range of 33.4-49.99, average daily share volume of 3.0M, a public-listing history dating back to 2020, approximately 29K full-time employees. These structural characteristics shape how APG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.61 indicates APG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 54.37 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.

What is a butterfly on APG?

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.

APG snapshot

As of August 14, 2026, spot at $43.79, ATM IV 36.20%, IV rank 10.47%, expected move 10.38%. The butterfly on APG 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 APG specifically: APG IV at 36.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a APG butterfly, with a market-implied 1-standard-deviation move of approximately 10.38% (roughly $4.54 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 APG expiries trade a higher absolute premium for lower per-day decay. Position sizing on APG should anchor to the underlying notional of $43.79 per share and to the trader's directional view on APG stock.

APG butterfly setup

The APG 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 APG at $43.79 on that close, the first option leg uses a $42.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed APG 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 APG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$42.00	$2.78
Sell 2	Call	$44.00	$1.93
Buy 1	Call	$46.00	$0.83

APG butterfly risk and reward

Net Premium / Debit: +$25.00
Max Profit (per contract): $223.50
Max Loss (per contract): $25.00
Breakeven(s): None on modeled curve
Risk / Reward Ratio: 8.940

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.

APG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on APG. 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%	+$25.00
$9.69	-77.9%	+$25.00
$19.37	-55.8%	+$25.00
$29.05	-33.7%	+$25.00
$38.73	-11.5%	+$25.00
$48.42	+10.6%	+$25.00
$58.10	+32.7%	+$25.00
$67.78	+54.8%	+$25.00
$77.46	+76.9%	+$25.00
$87.14	+99.0%	+$25.00

When traders use butterfly on APG

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

APG thesis for this butterfly

The market-implied 1-standard-deviation range for APG extends from approximately $39.25 on the downside to $48.33 on the upside. A APG long call butterfly is a pinning play: it pays maximum at the middle strike if APG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current APG IV rank near 10.47% 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 APG at 36.20%. As a Industrials name, APG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to APG-specific events.

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

Frequently asked questions

What is a butterfly on APG?: A butterfly on APG is the butterfly strategy applied to APG (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 APG stock at $43.79 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed APG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are APG 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 APG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.20%), the computed maximum profit is $223.50 per contract and the computed maximum loss is $25.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a APG butterfly?: The breakeven for the APG butterfly priced on this page is no defined breakeven on the modeled curve 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 APG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on APG?: Butterflies on APG are pinning bets - traders use them when they expect APG 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 APG implied volatility affect this butterfly?: APG ATM IV is at 36.20% with IV rank near 10.47%, 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.