How are ASO 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 ASO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.74%), the computed maximum profit is $147.83 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ASO butterfly?

The breakeven for the ASO butterfly priced on this page is roughly $45.40 and $48.60 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 ASO market-implied 1-standard-deviation expected move is approximately 12.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ASO implied volatility affect this butterfly?

ASO ATM IV is at 43.74% with IV rank near 34.67%, 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.

ASO Butterfly Strategy

ASO (Academy Sports and Outdoors, Inc.), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NASDAQ.

Academy Sports and Outdoors, Inc., through its various subsidiaries, operates as a significant retailer of sporting goods and outdoor recreational products throughout the United States. The company offers a vast and diverse inventory, encompassing everything from essential camping and marine equipment—like coolers, fishing rods, and bait—to specialized gear for hunting and shooting, including firearms, ammunition, archery supplies, and optics. For athletes and fitness enthusiasts, Academy provides equipment for popular team sports such as baseball, football, basketball, soccer, and golf, alongside fitness machinery, accessories, and nutritional supplements. Their product lines also extend to home and leisure items, featuring patio furniture, outdoor cooking appliances, trampolines, and watersports equipment, as well as various electronics and everyday consumables. Furthermore, the retailer stocks a comprehensive range of apparel, from outdoor and workwear to seasonal clothing, graphic t-shirts, and licensed merchandise from professional and collegiate teams. An extensive footwear selection is also available, covering casual and work boots, youth shoes, and specialized athletic footwear for running, training, and team sports.

ASO (Academy Sports and Outdoors, Inc.) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $3.01B, a trailing P/E of 8.15, a beta of 1.03 versus the broader market, a 52-week range of 41.29-62.445, average daily share volume of 1.5M, a public-listing history dating back to 2020, approximately 10K full-time employees. These structural characteristics shape how ASO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.03 places ASO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 8.15 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ASO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ASO?

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 ASO snapshot

As of June 30, 2026, spot at $47.11, ATM IV 43.74%, IV rank 34.67%, expected move 12.54%. The butterfly on ASO 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 31-day expiry.

Why this butterfly structure on ASO specifically: ASO IV at 43.74% 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 12.54% (roughly $5.91 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ASO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ASO should anchor to the underlying notional of $47.11 per share and to the trader's directional view on ASO stock.

ASO butterfly setup

The ASO 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 ASO near $47.11, the first option leg uses a $45.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ASO chain at a 31-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 ASO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$45.00	$3.75
Sell 2	Call	$47.00	$2.55
Buy 1	Call	$49.00	$1.75

ASO butterfly risk and reward

Net Premium / Debit: -$40.00
Max Profit (per contract): $147.83
Max Loss (per contract): -$40.00
Breakeven(s): $45.40, $48.60
Risk / Reward Ratio: 3.696

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.

ASO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ASO. 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%	-$40.00
$10.43	-77.9%	-$40.00
$20.84	-55.8%	-$40.00
$31.26	-33.7%	-$40.00
$41.67	-11.5%	-$40.00
$52.09	+10.6%	-$40.00
$62.50	+32.7%	-$40.00
$72.92	+54.8%	-$40.00
$83.33	+76.9%	-$40.00
$93.75	+99.0%	-$40.00

When traders use butterfly on ASO

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

ASO thesis for this butterfly

The market-implied 1-standard-deviation range for ASO extends from approximately $41.20 on the downside to $53.02 on the upside. A ASO long call butterfly is a pinning play: it pays maximum at the middle strike if ASO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ASO IV rank near 34.67% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ASO should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, ASO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ASO-specific events.

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

Frequently asked questions

What is a butterfly on ASO?: A butterfly on ASO is the butterfly strategy applied to ASO (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 ASO stock trading near $47.11, the strikes shown on this page are snapped to the nearest listed ASO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ASO 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 ASO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.74%), the computed maximum profit is $147.83 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ASO butterfly?: The breakeven for the ASO butterfly priced on this page is roughly $45.40 and $48.60 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 ASO market-implied 1-standard-deviation expected move is approximately 12.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ASO?: Butterflies on ASO are pinning bets - traders use them when they expect ASO 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 ASO implied volatility affect this butterfly?: ASO ATM IV is at 43.74% with IV rank near 34.67%, 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.