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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 92.24%), the computed maximum profit is $13.50 per contract and the computed maximum loss is -$36.50 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 $5.37 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 APT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.44%; 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 92.24% with IV rank near 21.80%, 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.

Established in 1983 and based in Markham, Canada, Alpha Pro Tech, Ltd. and its subsidiaries are actively involved in the development, manufacturing, and global distribution of a comprehensive range of disposable protective attire, infection control products, and building materials. The firm's activities are divided into two principal segments. The Disposable Protective Apparel division offers critical personal protective equipment such as shoe covers, bouffant caps, coveralls, frocks, lab coats, gowns, hoods, and both face masks and shields. These items find extensive application in sterile environments like cleanrooms, industrial safety operations, and healthcare settings including hospitals, laboratories, and dental practices. Concurrently, the Building Supply division provides construction weatherization solutions, notably housewrap and associated accessories like window/door flashing and seam tape, alongside synthetic roof underlayment and various other woven fabrics. These products are predominantly utilized at construction and re-roofing sites.

APT (Alpha Pro Tech, Ltd.) trades in the Industrials sector, specifically Construction, with a market capitalization of approximately $55.5M, a trailing P/E of 13.08, a beta of 0.90 versus the broader market, a 52-week range of 4.34-7.5, average daily share volume of 80K, a public-listing history dating back to 1999, approximately 122 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 0.90 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.

APT snapshot

As of August 14, 2026, spot at $5.47, ATM IV 92.24%, IV rank 21.80%, expected move 26.44%. The butterfly on APT 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 7-day expiry.

Why this butterfly structure on APT specifically: APT IV at 92.24% 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 26.44% (roughly $1.45 on the underlying). The 7-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 $5.47 per share and to the trader's directional view on APT stock.

APT butterfly setup

The APT 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 APT at $5.47 on that close, the first option leg uses a $5.00 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 7-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	$5.00	$0.53
Sell 2	Call	$5.50	$0.16
Buy 1	Call	$5.50	$0.16

APT butterfly risk and reward

Net Premium / Debit: -$36.50
Max Profit (per contract): $13.50
Max Loss (per contract): -$36.50
Breakeven(s): $5.37
Risk / Reward Ratio: 0.370

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.

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	-99.8%	-$36.50
$1.22	-77.7%	-$36.50
$2.43	-55.6%	-$36.50
$3.64	-33.5%	-$36.50
$4.84	-11.5%	-$36.50
$6.05	+10.6%	+$13.50
$7.26	+32.7%	+$13.50
$8.47	+54.8%	+$13.50
$9.68	+76.9%	+$13.50
$10.89	+99.0%	+$13.50

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 $4.02 on the downside to $6.92 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 21.80% 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 92.24%. 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 at $5.47 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed APT chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 92.24%), the computed maximum profit is $13.50 per contract and the computed maximum loss is -$36.50 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 $5.37 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 APT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.44%; 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 92.24% with IV rank near 21.80%, 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.