How are AXON 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 AXON butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.28%), the computed maximum profit is $1,741.91 per contract and the computed maximum loss is -$240.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AXON butterfly?

The breakeven for the AXON butterfly priced on this page is roughly $377.40 and $412.60 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 AXON market-implied 1-standard-deviation expected move is approximately 16.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AXON implied volatility affect this butterfly?

AXON ATM IV is at 57.28% with IV rank near 44.97%, 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.

AXON Butterfly Strategy

AXON (Axon Enterprise, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NASDAQ.

Axon Enterprise, Inc. develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally. It operates through two segments, TASER, and Software and Sensors. The company also offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence. Its products include TASER 7, TASER X26P, TASER X2, TASER Consumer devices, and related cartridges; on-officer body cameras, Axon Fleet in-car systems, and other devices; Axon Evidence digital evidence management software; Axon Signal enabled devices, as well as hardware extended warranties; and Axon docks, cartridges, and batteries. It sells its products through its direct sales force, distribution partners, online store, and third-party resellers. Axon Enterprise, Inc. has a strategic partnership with Fusus, Inc. to expand the capabilities of Axon Respond and the Fusus Real Time Crime Center in the Cloud solution to provide agencies real-time operations situational awareness, including streamlined investigative workflows.

AXON (Axon Enterprise, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $30.37B, a trailing P/E of 146.44, a beta of 1.44 versus the broader market, a 52-week range of 339.01-885.92, average daily share volume of 1.3M, a public-listing history dating back to 2001, approximately 5K full-time employees. These structural characteristics shape how AXON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.44 indicates AXON has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 146.44 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a butterfly on AXON?

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 AXON snapshot

As of May 15, 2026, spot at $393.20, ATM IV 57.28%, IV rank 44.97%, expected move 16.42%. The butterfly on AXON 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 28-day expiry.

Why this butterfly structure on AXON specifically: AXON IV at 57.28% 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 16.42% (roughly $64.57 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AXON expiries trade a higher absolute premium for lower per-day decay. Position sizing on AXON should anchor to the underlying notional of $393.20 per share and to the trader's directional view on AXON stock.

AXON butterfly setup

The AXON 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 AXON near $393.20, the first option leg uses a $375.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AXON chain at a 28-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 AXON shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$375.00	$36.30
Sell 2	Call	$395.00	$25.80
Buy 1	Call	$415.00	$17.70

AXON butterfly risk and reward

Net Premium / Debit: -$240.00
Max Profit (per contract): $1,741.91
Max Loss (per contract): -$240.00
Breakeven(s): $377.40, $412.60
Risk / Reward Ratio: 7.258

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.

AXON butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AXON. 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%	-$240.00
$86.95	-77.9%	-$240.00
$173.89	-55.8%	-$240.00
$260.82	-33.7%	-$240.00
$347.76	-11.6%	-$240.00
$434.70	+10.6%	-$240.00
$521.64	+32.7%	-$240.00
$608.57	+54.8%	-$240.00
$695.51	+76.9%	-$240.00
$782.45	+99.0%	-$240.00

When traders use butterfly on AXON

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

AXON thesis for this butterfly

The market-implied 1-standard-deviation range for AXON extends from approximately $328.63 on the downside to $457.77 on the upside. A AXON long call butterfly is a pinning play: it pays maximum at the middle strike if AXON settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AXON IV rank near 44.97% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on AXON should anchor more to the directional view and the expected-move geometry. As a Industrials name, AXON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AXON-specific events.

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

Frequently asked questions

What is a butterfly on AXON?: A butterfly on AXON is the butterfly strategy applied to AXON (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 AXON stock trading near $393.20, the strikes shown on this page are snapped to the nearest listed AXON chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AXON 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 AXON butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.28%), the computed maximum profit is $1,741.91 per contract and the computed maximum loss is -$240.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AXON butterfly?: The breakeven for the AXON butterfly priced on this page is roughly $377.40 and $412.60 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 AXON market-implied 1-standard-deviation expected move is approximately 16.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AXON?: Butterflies on AXON are pinning bets - traders use them when they expect AXON 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 AXON implied volatility affect this butterfly?: AXON ATM IV is at 57.28% with IV rank near 44.97%, 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.