How are AVY 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 AVY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 25.50%), the computed maximum profit is $496.51 per contract and the computed maximum loss is -$457.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVY butterfly?

The breakeven for the AVY butterfly priced on this page is roughly $160.43 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 AVY market-implied 1-standard-deviation expected move is approximately 7.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVY implied volatility affect this butterfly?

AVY ATM IV is at 25.50% with IV rank near 46.26%, 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.

AVY Butterfly Strategy

AVY (Avery Dennison Corporation), in the Industrials sector, (Business Equipment & Supplies industry), listed on NYSE.

Avery Dennison Corporation manufactures and markets pressure-sensitive materials and products in the United States, Europe, Asia, Latin America, and internationally. The company's Label and Graphic Materials segment offers pressure-sensitive label and packaging materials; and graphics and reflective products under the Fasson, JAC, Avery Dennison, and Mactac brands, as well as durable cast and reflective films. It provides its products to the home and personal care, beer and beverage, durables, pharmaceutical, wine and spirits, and food market segments; architectural, commercial sign, digital printing, and other related market segments; construction, automotive, and fleet transportation market segments, as well as traffic and safety applications; and sign shops, commercial printers, and designers. The company's Retail Branding and Information Solutions segment designs, manufactures, and sells brand embellishments, graphic tickets, tags and labels, and sustainable packaging solutions, as well as offers creative services; radio-frequency identification products; visibility and loss prevention solutions; price ticketing and marking solutions; care, content, and country of origin compliance solutions; and brand protection and security solutions. It serves retailers, brand owners, apparel manufacturers, distributors, and industrial customers. The company's Industrial and Healthcare Materials segment offers tapes; pressure-sensitive adhesive based materials and converted products; medical fasteners; and performance polymers under the Fasson, Avery Dennison, and Yongle brands.

AVY (Avery Dennison Corporation) trades in the Industrials sector, specifically Business Equipment & Supplies, with a market capitalization of approximately $12.14B, a trailing P/E of 17.72, a beta of 0.85 versus the broader market, a 52-week range of 156.23-199.54, average daily share volume of 728K, a public-listing history dating back to 1977, approximately 35K full-time employees. These structural characteristics shape how AVY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.85 places AVY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AVY?

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 AVY snapshot

As of May 15, 2026, spot at $156.24, ATM IV 25.50%, IV rank 46.26%, expected move 7.31%. The butterfly on AVY 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 AVY specifically: AVY IV at 25.50% 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 7.31% (roughly $11.42 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 AVY expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVY should anchor to the underlying notional of $156.24 per share and to the trader's directional view on AVY stock.

AVY butterfly setup

The AVY 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 AVY near $156.24, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVY 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 AVY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$150.00	$8.90
Sell 2	Call	$155.00	$5.65
Buy 1	Call	$165.00	$1.98

AVY butterfly risk and reward

Net Premium / Debit: +$42.50
Max Profit (per contract): $496.51
Max Loss (per contract): -$457.50
Breakeven(s): $160.43
Risk / Reward Ratio: 1.085

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.

AVY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AVY. 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%	+$42.50
$34.55	-77.9%	+$42.50
$69.10	-55.8%	+$42.50
$103.64	-33.7%	+$42.50
$138.19	-11.6%	+$42.50
$172.73	+10.6%	-$457.50
$207.28	+32.7%	-$457.50
$241.82	+54.8%	-$457.50
$276.37	+76.9%	-$457.50
$310.91	+99.0%	-$457.50

When traders use butterfly on AVY

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

AVY thesis for this butterfly

The market-implied 1-standard-deviation range for AVY extends from approximately $144.82 on the downside to $167.66 on the upside. A AVY long call butterfly is a pinning play: it pays maximum at the middle strike if AVY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AVY IV rank near 46.26% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on AVY should anchor more to the directional view and the expected-move geometry. As a Industrials name, AVY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVY-specific events.

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

Frequently asked questions

What is a butterfly on AVY?: A butterfly on AVY is the butterfly strategy applied to AVY (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 AVY stock trading near $156.24, the strikes shown on this page are snapped to the nearest listed AVY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AVY 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 AVY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 25.50%), the computed maximum profit is $496.51 per contract and the computed maximum loss is -$457.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVY butterfly?: The breakeven for the AVY butterfly priced on this page is roughly $160.43 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 AVY market-implied 1-standard-deviation expected move is approximately 7.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AVY?: Butterflies on AVY are pinning bets - traders use them when they expect AVY 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 AVY implied volatility affect this butterfly?: AVY ATM IV is at 25.50% with IV rank near 46.26%, 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.