How are BG 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 BG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.90%), the computed maximum profit is $354.43 per contract and the computed maximum loss is -$92.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BG butterfly?

The breakeven for the BG butterfly priced on this page is roughly $110.92 and $119.09 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BG implied volatility affect this butterfly?

BG ATM IV is at 27.90% with IV rank near 1.25%, 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.

BG Butterfly Strategy

BG (Bunge Global S.A.), in the Consumer Defensive sector, (Agricultural Farm Products industry), listed on NYSE.

Bunge Global S.A., established in 1818 and headquartered in St. Louis, Missouri, operates as a prominent international agribusiness and food corporation. Its diverse operations are categorized into four main divisions: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment involves the sourcing, storage, transportation, processing, and sale of agricultural goods and their derivatives. Key commodities include various oilseeds such as soybeans, rapeseed, canola, and sunflower seeds, alongside grains like wheat and corn. These oilseeds are further processed into vegetable oils and protein-rich meals.

BG (Bunge Global S.A.) trades in the Consumer Defensive sector, specifically Agricultural Farm Products, with a market capitalization of approximately $21.47B, a trailing P/E of 21.69, a beta of 0.64 versus the broader market, a 52-week range of 76.01-134.87, average daily share volume of 1.6M, a public-listing history dating back to 2001, approximately 34K full-time employees. These structural characteristics shape how BG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.64 indicates BG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on BG?

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.

BG snapshot

As of August 14, 2026, spot at $113.81, ATM IV 27.90%, IV rank 1.25%, expected move 8.00%. The butterfly on BG below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this butterfly structure on BG specifically: BG IV at 27.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a BG butterfly, with a market-implied 1-standard-deviation move of approximately 8.00% (roughly $9.10 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BG expiries trade a higher absolute premium for lower per-day decay. Position sizing on BG should anchor to the underlying notional of $113.81 per share and to the trader's directional view on BG stock.

BG butterfly setup

The BG butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BG at $113.81 on that close, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BG chain at a 35-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 BG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$110.00	$6.00
Sell 2	Call	$115.00	$3.30
Buy 1	Call	$120.00	$1.53

BG butterfly risk and reward

Net Premium / Debit: -$92.50
Max Profit (per contract): $354.43
Max Loss (per contract): -$92.50
Breakeven(s): $110.92, $119.09
Risk / Reward Ratio: 3.832

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.

BG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on BG. 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%	-$92.50
$25.17	-77.9%	-$92.50
$50.34	-55.8%	-$92.50
$75.50	-33.7%	-$92.50
$100.66	-11.6%	-$92.50
$125.82	+10.6%	-$92.50
$150.99	+32.7%	-$92.50
$176.15	+54.8%	-$92.50
$201.31	+76.9%	-$92.50
$226.48	+99.0%	-$92.50

When traders use butterfly on BG

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

BG thesis for this butterfly

The market-implied 1-standard-deviation range for BG extends from approximately $104.71 on the downside to $122.91 on the upside. A BG long call butterfly is a pinning play: it pays maximum at the middle strike if BG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BG IV rank near 1.25% 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 BG at 27.90%. As a Consumer Defensive name, BG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BG-specific events.

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

Frequently asked questions

What is a butterfly on BG?: A butterfly on BG is the butterfly strategy applied to BG (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 BG stock at $113.81 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BG 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 BG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.90%), the computed maximum profit is $354.43 per contract and the computed maximum loss is -$92.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BG butterfly?: The breakeven for the BG butterfly priced on this page is roughly $110.92 and $119.09 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on BG?: Butterflies on BG are pinning bets - traders use them when they expect BG 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 BG implied volatility affect this butterfly?: BG ATM IV is at 27.90% with IV rank near 1.25%, 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.