How are APT 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 APT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 143.74%), the computed maximum profit is $17.50 per contract and the computed maximum loss is -$32.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a APT butterfly?

The breakeven for the APT butterfly priced on this page is roughly $5.68 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 APT market-implied 1-standard-deviation expected move is approximately 41.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current APT implied volatility affect this butterfly?

APT ATM IV is at 143.74% with IV rank near 26.23%, 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.

APT Butterfly Strategy

APT (Alpha Pro Tech, Ltd.), in the Industrials sector, (Construction industry), listed on AMEX.

Alpha Pro Tech, Ltd., together with its subsidiaries, develops, manufactures, and markets a range of disposable protective apparel, infection control, and building supply products in the United States and internationally. The company operates through two segments, Disposable Protective Apparel and Building Supply. The Disposable Protective Apparel segment provides shoe covers, bouffant caps, coveralls, frocks, lab coats, and gowns, hoods, as well as face masks and shields. The Building Supply segment offers construction weatherization products, such as housewrap and housewrap accessories, including window and door flashing, and seam tape, and synthetic roof underlayment, as well as other woven material. The company markets its products under the Alpha Pro Tech brand name, as well as under private labels. Its products are used primarily in cleanrooms; industrial safety manufacturing environments; health care facilities, such as hospitals, laboratories, and dental offices; building and re-roofing sites.

APT (Alpha Pro Tech, Ltd.) trades in the Industrials sector, specifically Construction, with a market capitalization of approximately $62.1M, a trailing P/E of 17.02, a beta of 0.80 versus the broader market, a 52-week range of 4.25-7.5, average daily share volume of 73K, a public-listing history dating back to 1999, approximately 130 full-time employees. These structural characteristics shape how APT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.80 places APT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on APT?

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 APT snapshot

As of May 15, 2026, spot at $5.58, ATM IV 143.74%, IV rank 26.23%, expected move 41.21%. The butterfly on APT 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 14-day expiry.

Why this butterfly structure on APT specifically: APT IV at 143.74% is on the cheap side of its 1-year range, which favors premium-buying structures like a APT butterfly, with a market-implied 1-standard-deviation move of approximately 41.21% (roughly $2.30 on the underlying). The 14-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated APT expiries trade a higher absolute premium for lower per-day decay. Position sizing on APT should anchor to the underlying notional of $5.58 per share and to the trader's directional view on APT stock.

APT butterfly setup

The APT 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 APT near $5.58, the first option leg uses a $5.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed APT chain at a 14-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 APT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$5.50	$0.65
Sell 2	Call	$5.50	$0.65
Buy 1	Call	$6.00	$0.48

APT butterfly risk and reward

Net Premium / Debit: +$17.50
Max Profit (per contract): $17.50
Max Loss (per contract): -$32.50
Breakeven(s): $5.68
Risk / Reward Ratio: 0.538

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.

APT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on APT. 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	-99.8%	+$17.50
$1.24	-77.7%	+$17.50
$2.48	-55.6%	+$17.50
$3.71	-33.5%	+$17.50
$4.94	-11.5%	+$17.50
$6.17	+10.6%	-$32.50
$7.41	+32.7%	-$32.50
$8.64	+54.8%	-$32.50
$9.87	+76.9%	-$32.50
$11.10	+99.0%	-$32.50

When traders use butterfly on APT

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

APT thesis for this butterfly

The market-implied 1-standard-deviation range for APT extends from approximately $3.28 on the downside to $7.88 on the upside. A APT long call butterfly is a pinning play: it pays maximum at the middle strike if APT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current APT IV rank near 26.23% 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 APT at 143.74%. As a Industrials name, APT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to APT-specific events.

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

Frequently asked questions

What is a butterfly on APT?: A butterfly on APT is the butterfly strategy applied to APT (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 APT stock trading near $5.58, the strikes shown on this page are snapped to the nearest listed APT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are APT 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 APT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 143.74%), the computed maximum profit is $17.50 per contract and the computed maximum loss is -$32.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a APT butterfly?: The breakeven for the APT butterfly priced on this page is roughly $5.68 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 APT market-implied 1-standard-deviation expected move is approximately 41.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on APT?: Butterflies on APT are pinning bets - traders use them when they expect APT 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 APT implied volatility affect this butterfly?: APT ATM IV is at 143.74% with IV rank near 26.23%, 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.