How are BJ 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 BJ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.40%), the computed maximum profit is $346.93 per contract and the computed maximum loss is -$120.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BJ butterfly?

The breakeven for the BJ butterfly priced on this page is roughly $91.20 and $98.80 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 BJ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BJ implied volatility affect this butterfly?

BJ ATM IV is at 36.40% with IV rank near 4.65%, 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.

BJ Butterfly Strategy

BJ (BJ's Wholesale Club Holdings, Inc.), in the Consumer Defensive sector, (Discount Stores industry), listed on NYSE.

BJ's Wholesale Club Holdings, Inc., alongside its subsidiaries, manages a network of membership-based retail warehouses primarily located across the eastern United States. This enterprise provides a range of products including perishable goods, general merchandise, and gasoline, in addition to various supplementary services. Customers can acquire items through its dedicated websites—BJs.com, BerkleyJensen.com, Wellsleyfarms.com, and Delivery.bjs.com—as well as via its mobile application. By June 10, 2022, the company's operational footprint extended to 229 warehouse clubs and 160 gas stations across 17 states. Originally incorporated as Beacon Holding Inc., the company rebranded to BJ's Wholesale Club Holdings, Inc. in February 2018. Established in 1984, its corporate headquarters are situated in Westborough, Massachusetts.

BJ (BJ's Wholesale Club Holdings, Inc.) trades in the Consumer Defensive sector, specifically Discount Stores, with a market capitalization of approximately $11.93B, a trailing P/E of 21.03, a beta of 0.23 versus the broader market, a 52-week range of 83.212-107.62, average daily share volume of 2.0M, a public-listing history dating back to 2018, approximately 35K full-time employees. These structural characteristics shape how BJ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.23 indicates BJ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a butterfly on BJ?

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.

BJ snapshot

As of August 14, 2026, spot at $93.91, ATM IV 36.40%, IV rank 4.65%, expected move 10.44%. The butterfly on BJ 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 7-day expiry.

Why this butterfly structure on BJ specifically: BJ IV at 36.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a BJ butterfly, with a market-implied 1-standard-deviation move of approximately 10.44% (roughly $9.80 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on BJ should anchor to the underlying notional of $93.91 per share and to the trader's directional view on BJ stock.

BJ butterfly setup

The BJ 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 BJ at $93.91 on that close, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BJ chain at a 7-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 BJ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$90.00	$4.95
Sell 2	Call	$95.00	$2.33
Buy 1	Call	$100.00	$0.90

BJ butterfly risk and reward

Net Premium / Debit: -$120.00
Max Profit (per contract): $346.93
Max Loss (per contract): -$120.00
Breakeven(s): $91.20, $98.80
Risk / Reward Ratio: 2.891

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.

BJ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on BJ. 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%	-$120.00
$20.77	-77.9%	-$120.00
$41.54	-55.8%	-$120.00
$62.30	-33.7%	-$120.00
$83.06	-11.6%	-$120.00
$103.82	+10.6%	-$120.00
$124.59	+32.7%	-$120.00
$145.35	+54.8%	-$120.00
$166.11	+76.9%	-$120.00
$186.88	+99.0%	-$120.00

When traders use butterfly on BJ

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

BJ thesis for this butterfly

The market-implied 1-standard-deviation range for BJ extends from approximately $84.11 on the downside to $103.71 on the upside. A BJ long call butterfly is a pinning play: it pays maximum at the middle strike if BJ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BJ IV rank near 4.65% 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 BJ at 36.40%. As a Consumer Defensive name, BJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BJ-specific events.

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

Frequently asked questions

What is a butterfly on BJ?: A butterfly on BJ is the butterfly strategy applied to BJ (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 BJ stock at $93.91 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BJ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BJ 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 BJ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.40%), the computed maximum profit is $346.93 per contract and the computed maximum loss is -$120.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BJ butterfly?: The breakeven for the BJ butterfly priced on this page is roughly $91.20 and $98.80 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 BJ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on BJ?: Butterflies on BJ are pinning bets - traders use them when they expect BJ 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 BJ implied volatility affect this butterfly?: BJ ATM IV is at 36.40% with IV rank near 4.65%, 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.