How are ARW 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 ARW butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.50%), the computed maximum profit is $793.40 per contract and the computed maximum loss is -$185.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ARW butterfly?

The breakeven for the ARW butterfly priced on this page is roughly $201.85 and $218.15 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 ARW market-implied 1-standard-deviation expected move is approximately 10.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ARW implied volatility affect this butterfly?

ARW ATM IV is at 37.50% with IV rank near 57.32%, 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.

ARW Butterfly Strategy

ARW (Arrow Electronics, Inc.), in the Technology sector, (Technology Distributors industry), listed on NYSE.

Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes semiconductor products and related services; passive, electro-mechanical, and interconnect products, including capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. The Global Enterprise Computing Solutions segment offers computing solutions, such as datacenter, cloud, security, and analytics solutions. This segment provides access to various services, including engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training. The company serves original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers, and other commercial customers.

ARW (Arrow Electronics, Inc.) trades in the Technology sector, specifically Technology Distributors, with a market capitalization of approximately $10.83B, a trailing P/E of 14.96, a beta of 1.17 versus the broader market, a 52-week range of 101.79-212.44, average daily share volume of 614K, a public-listing history dating back to 1980, approximately 22K full-time employees. These structural characteristics shape how ARW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.17 places ARW roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on ARW?

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 ARW snapshot

As of May 15, 2026, spot at $209.16, ATM IV 37.50%, IV rank 57.32%, expected move 10.75%. The butterfly on ARW 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 ARW specifically: ARW IV at 37.50% 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 10.75% (roughly $22.49 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 ARW expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARW should anchor to the underlying notional of $209.16 per share and to the trader's directional view on ARW stock.

ARW butterfly setup

The ARW 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 ARW near $209.16, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARW 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 ARW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$200.00	$15.25
Sell 2	Call	$210.00	$9.55
Buy 1	Call	$220.00	$5.70

ARW butterfly risk and reward

Net Premium / Debit: -$185.00
Max Profit (per contract): $793.40
Max Loss (per contract): -$185.00
Breakeven(s): $201.85, $218.15
Risk / Reward Ratio: 4.289

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.

ARW butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ARW. 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%	-$185.00
$46.26	-77.9%	-$185.00
$92.50	-55.8%	-$185.00
$138.75	-33.7%	-$185.00
$184.99	-11.6%	-$185.00
$231.24	+10.6%	-$185.00
$277.48	+32.7%	-$185.00
$323.73	+54.8%	-$185.00
$369.97	+76.9%	-$185.00
$416.22	+99.0%	-$185.00

When traders use butterfly on ARW

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

ARW thesis for this butterfly

The market-implied 1-standard-deviation range for ARW extends from approximately $186.67 on the downside to $231.65 on the upside. A ARW long call butterfly is a pinning play: it pays maximum at the middle strike if ARW settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ARW IV rank near 57.32% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ARW should anchor more to the directional view and the expected-move geometry. As a Technology name, ARW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARW-specific events.

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

Frequently asked questions

What is a butterfly on ARW?: A butterfly on ARW is the butterfly strategy applied to ARW (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 ARW stock trading near $209.16, the strikes shown on this page are snapped to the nearest listed ARW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ARW 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 ARW butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.50%), the computed maximum profit is $793.40 per contract and the computed maximum loss is -$185.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ARW butterfly?: The breakeven for the ARW butterfly priced on this page is roughly $201.85 and $218.15 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 ARW market-implied 1-standard-deviation expected move is approximately 10.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ARW?: Butterflies on ARW are pinning bets - traders use them when they expect ARW 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 ARW implied volatility affect this butterfly?: ARW ATM IV is at 37.50% with IV rank near 57.32%, 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.