How are BAND 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 BAND butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 87.80%), the computed maximum profit is $255.00 per contract and the computed maximum loss is -$245.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BAND butterfly?

The breakeven for the BAND butterfly priced on this page is roughly $62.55 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 BAND market-implied 1-standard-deviation expected move is approximately 25.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BAND implied volatility affect this butterfly?

BAND ATM IV is at 87.80% with IV rank near 53.93%, 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.

BAND Butterfly Strategy

BAND (Bandwidth Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.

Bandwidth Inc. offers a sophisticated, cloud-native Communications Platform-as-a-Service (CPaaS), primarily focused on the United States market. The company's business activities are categorized into two main segments: CPaaS and "Other." Through its robust platform, Bandwidth Inc. empowers various organizations to effortlessly build, expand, and oversee their voice and messaging communication capabilities, integrating them seamlessly into mobile applications and other connected devices. Complementing its core CPaaS offering, the company also provides services such as SIP trunking, data resale, and hosted Voice over Internet Protocol (VoIP) solutions. Bandwidth Inc. caters to a broad spectrum of clients, including major corporations, telecommunications service providers, conferencing platforms, contact centers, small and medium-sized enterprises (SMEs), and emerging technology firms. The company was established in 2000 and is currently headquartered in Raleigh, North Carolina.

BAND (Bandwidth Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $1.82B, a beta of 2.92 versus the broader market, a 52-week range of 12.5-75.98, average daily share volume of 1.1M, a public-listing history dating back to 2017, approximately 1K full-time employees. These structural characteristics shape how BAND stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.92 indicates BAND has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on BAND?

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 BAND snapshot

As of June 29, 2026, spot at $61.28, ATM IV 87.80%, IV rank 53.93%, expected move 25.17%. The butterfly on BAND 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 53-day expiry.

Why this butterfly structure on BAND specifically: BAND IV at 87.80% 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 25.17% (roughly $15.43 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BAND expiries trade a higher absolute premium for lower per-day decay. Position sizing on BAND should anchor to the underlying notional of $61.28 per share and to the trader's directional view on BAND stock.

BAND butterfly setup

The BAND 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 BAND near $61.28, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BAND chain at a 53-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 BAND shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$60.00	$9.80
Sell 2	Call	$60.00	$9.80
Buy 1	Call	$65.00	$7.25

BAND butterfly risk and reward

Net Premium / Debit: +$255.00
Max Profit (per contract): $255.00
Max Loss (per contract): -$245.00
Breakeven(s): $62.55
Risk / Reward Ratio: 1.041

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.

BAND butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on BAND. 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%	+$255.00
$13.56	-77.9%	+$255.00
$27.11	-55.8%	+$255.00
$40.65	-33.7%	+$255.00
$54.20	-11.5%	+$255.00
$67.75	+10.6%	-$245.00
$81.30	+32.7%	-$245.00
$94.85	+54.8%	-$245.00
$108.40	+76.9%	-$245.00
$121.94	+99.0%	-$245.00

When traders use butterfly on BAND

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

BAND thesis for this butterfly

The market-implied 1-standard-deviation range for BAND extends from approximately $45.85 on the downside to $76.71 on the upside. A BAND long call butterfly is a pinning play: it pays maximum at the middle strike if BAND settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BAND IV rank near 53.93% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on BAND should anchor more to the directional view and the expected-move geometry. As a Technology name, BAND options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BAND-specific events.

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

Frequently asked questions

What is a butterfly on BAND?: A butterfly on BAND is the butterfly strategy applied to BAND (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 BAND stock trading near $61.28, the strikes shown on this page are snapped to the nearest listed BAND chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BAND 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 BAND butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 87.80%), the computed maximum profit is $255.00 per contract and the computed maximum loss is -$245.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BAND butterfly?: The breakeven for the BAND butterfly priced on this page is roughly $62.55 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 BAND market-implied 1-standard-deviation expected move is approximately 25.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on BAND?: Butterflies on BAND are pinning bets - traders use them when they expect BAND 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 BAND implied volatility affect this butterfly?: BAND ATM IV is at 87.80% with IV rank near 53.93%, 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.