How are AVTR 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 AVTR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.30%), the computed maximum profit is $85.00 per contract and the computed maximum loss is -$15.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVTR butterfly?

The breakeven for the AVTR butterfly priced on this page is roughly $7.15 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 AVTR market-implied 1-standard-deviation expected move is approximately 15.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVTR implied volatility affect this butterfly?

AVTR ATM IV is at 55.30% with IV rank near 9.77%, 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.

AVTR Butterfly Strategy

AVTR (Avantor, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NYSE.

Avantor, Inc. provides products and services to customers in biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Avantor, Inc. was founded in 1904 and is headquartered in Radnor, Pennsylvania.

AVTR (Avantor, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $5.37B, a beta of 0.94 versus the broader market, a 52-week range of 7.265-15.93, average daily share volume of 9.4M, a public-listing history dating back to 2019, approximately 14K full-time employees. These structural characteristics shape how AVTR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.94 places AVTR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on AVTR?

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 AVTR snapshot

As of May 15, 2026, spot at $7.63, ATM IV 55.30%, IV rank 9.77%, expected move 15.85%. The butterfly on AVTR 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 245-day expiry.

Why this butterfly structure on AVTR specifically: AVTR IV at 55.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVTR butterfly, with a market-implied 1-standard-deviation move of approximately 15.85% (roughly $1.21 on the underlying). The 245-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVTR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVTR should anchor to the underlying notional of $7.63 per share and to the trader's directional view on AVTR stock.

AVTR butterfly setup

The AVTR 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 AVTR near $7.63, the first option leg uses a $7.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVTR chain at a 245-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 AVTR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$7.00	$2.15
Sell 2	Call	$8.00	$2.00
Buy 1	Call	$8.00	$2.00

AVTR butterfly risk and reward

Net Premium / Debit: -$15.00
Max Profit (per contract): $85.00
Max Loss (per contract): -$15.00
Breakeven(s): $7.15
Risk / Reward Ratio: 5.667

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.

AVTR butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AVTR. 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	-99.9%	-$15.00
$1.70	-77.8%	-$15.00
$3.38	-55.7%	-$15.00
$5.07	-33.6%	-$15.00
$6.75	-11.5%	-$15.00
$8.44	+10.6%	+$85.00
$10.13	+32.7%	+$85.00
$11.81	+54.8%	+$85.00
$13.50	+76.9%	+$85.00
$15.18	+99.0%	+$85.00

When traders use butterfly on AVTR

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

AVTR thesis for this butterfly

The market-implied 1-standard-deviation range for AVTR extends from approximately $6.42 on the downside to $8.84 on the upside. A AVTR long call butterfly is a pinning play: it pays maximum at the middle strike if AVTR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AVTR IV rank near 9.77% 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 AVTR at 55.30%. As a Healthcare name, AVTR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVTR-specific events.

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

Frequently asked questions

What is a butterfly on AVTR?: A butterfly on AVTR is the butterfly strategy applied to AVTR (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 AVTR stock trading near $7.63, the strikes shown on this page are snapped to the nearest listed AVTR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AVTR 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 AVTR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.30%), the computed maximum profit is $85.00 per contract and the computed maximum loss is -$15.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVTR butterfly?: The breakeven for the AVTR butterfly priced on this page is roughly $7.15 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 AVTR market-implied 1-standard-deviation expected move is approximately 15.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AVTR?: Butterflies on AVTR are pinning bets - traders use them when they expect AVTR 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 AVTR implied volatility affect this butterfly?: AVTR ATM IV is at 55.30% with IV rank near 9.77%, 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.