How are BHE 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 BHE butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.50%), the computed maximum profit is $235.00 per contract and the computed maximum loss is -$265.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BHE butterfly?

The breakeven for the BHE butterfly priced on this page is roughly $82.35 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 BHE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BHE implied volatility affect this butterfly?

BHE ATM IV is at 42.50% with IV rank near 7.47%, 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.

BHE Butterfly Strategy

BHE (Benchmark Electronics, Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NYSE.

Benchmark Electronics, Inc., together with its subsidiaries, operates as a global provider, delivering a comprehensive suite of product design, engineering, technology solutions, and manufacturing services across the Americas, Asia, and Europe. Its capabilities span engineering and technology solutions, encompassing initial product design, prototyping, and comprehensive testing. This includes specialized custom testing setups and the development and construction of automation equipment. Furthermore, Benchmark excels in electronics manufacturing and rigorous testing. This involves the assembly and testing of printed circuit boards and subsystems, alongside thorough evaluations of circuitry and functionality. Their quality assurance extends to environmental, stress, and component reliability assessments, complemented by component engineering, manufacturing defect analysis, in-circuit testing, functional testing, lifecycle testing, and detailed failure analysis.

BHE (Benchmark Electronics, Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $2.94B, a trailing P/E of 55.12, a beta of 1.29 versus the broader market, a 52-week range of 35.91-100.41, average daily share volume of 461K, a public-listing history dating back to 1990, approximately 12K full-time employees. These structural characteristics shape how BHE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.29 places BHE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 55.12 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. BHE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on BHE?

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.

BHE snapshot

As of August 14, 2026, spot at $81.63, ATM IV 42.50%, IV rank 7.47%, expected move 12.18%. The butterfly on BHE 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 BHE specifically: BHE IV at 42.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a BHE butterfly, with a market-implied 1-standard-deviation move of approximately 12.18% (roughly $9.95 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 BHE expiries trade a higher absolute premium for lower per-day decay. Position sizing on BHE should anchor to the underlying notional of $81.63 per share and to the trader's directional view on BHE stock.

BHE butterfly setup

The BHE 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 BHE at $81.63 on that close, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BHE 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 BHE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$80.00	$5.15
Sell 2	Call	$80.00	$5.15
Buy 1	Call	$85.00	$2.80

BHE butterfly risk and reward

Net Premium / Debit: +$235.00
Max Profit (per contract): $235.00
Max Loss (per contract): -$265.00
Breakeven(s): $82.35
Risk / Reward Ratio: 0.887

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.

BHE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on BHE. 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%	+$235.00
$18.06	-77.9%	+$235.00
$36.11	-55.8%	+$235.00
$54.15	-33.7%	+$235.00
$72.20	-11.6%	+$235.00
$90.25	+10.6%	-$265.00
$108.30	+32.7%	-$265.00
$126.34	+54.8%	-$265.00
$144.39	+76.9%	-$265.00
$162.44	+99.0%	-$265.00

When traders use butterfly on BHE

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

BHE thesis for this butterfly

The market-implied 1-standard-deviation range for BHE extends from approximately $71.68 on the downside to $91.58 on the upside. A BHE long call butterfly is a pinning play: it pays maximum at the middle strike if BHE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BHE IV rank near 7.47% 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 BHE at 42.50%. As a Technology name, BHE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BHE-specific events.

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

Frequently asked questions

What is a butterfly on BHE?: A butterfly on BHE is the butterfly strategy applied to BHE (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 BHE stock at $81.63 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BHE chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BHE 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 BHE butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.50%), the computed maximum profit is $235.00 per contract and the computed maximum loss is -$265.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BHE butterfly?: The breakeven for the BHE butterfly priced on this page is roughly $82.35 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 BHE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on BHE?: Butterflies on BHE are pinning bets - traders use them when they expect BHE 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 BHE implied volatility affect this butterfly?: BHE ATM IV is at 42.50% with IV rank near 7.47%, 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.