How are BJRI 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 BJRI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.40%), the computed maximum profit is $205.47 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BJRI butterfly?

The breakeven for the BJRI butterfly priced on this page is roughly $57.90 and $62.10 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 BJRI market-implied 1-standard-deviation expected move is approximately 15.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BJRI implied volatility affect this butterfly?

BJRI ATM IV is at 53.40% with IV rank near 43.95%, 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.

BJRI Butterfly Strategy

BJRI (BJ's Restaurants, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.

BJ's Restaurants, Inc. manages a network of casual dining establishments situated throughout the United States. Patrons can enjoy a diverse menu at these eateries, encompassing pizzas, a variety of beers (including craft selections), appetizers, main courses, pasta dishes, sandwiches, signature salads, and decadent desserts. As of April 19, 2022, the corporation had a footprint of 213 restaurants, operating across 29 states. This company was founded in 1978 and is headquartered in Huntington Beach, California.

BJRI (BJ's Restaurants, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $1.26B, a trailing P/E of 28.56, a beta of 1.36 versus the broader market, a 52-week range of 28.46-60.77, average daily share volume of 422K, a public-listing history dating back to 1996, approximately 21K full-time employees. These structural characteristics shape how BJRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.36 indicates BJRI 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 BJRI?

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 BJRI snapshot

As of June 29, 2026, spot at $59.65, ATM IV 53.40%, IV rank 43.95%, expected move 15.31%. The butterfly on BJRI 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 18-day expiry.

Why this butterfly structure on BJRI specifically: BJRI IV at 53.40% 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 15.31% (roughly $9.13 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BJRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on BJRI should anchor to the underlying notional of $59.65 per share and to the trader's directional view on BJRI stock.

BJRI butterfly setup

The BJRI 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 BJRI near $59.65, the first option leg uses a $57.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BJRI chain at a 18-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 BJRI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$57.50	$3.08
Sell 2	Call	$60.00	$2.33
Buy 1	Call	$62.50	$1.98

BJRI butterfly risk and reward

Net Premium / Debit: -$40.00
Max Profit (per contract): $205.47
Max Loss (per contract): -$40.00
Breakeven(s): $57.90, $62.10
Risk / Reward Ratio: 5.137

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.

BJRI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on BJRI. 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%	-$40.00
$13.20	-77.9%	-$40.00
$26.39	-55.8%	-$40.00
$39.57	-33.7%	-$40.00
$52.76	-11.5%	-$40.00
$65.95	+10.6%	-$40.00
$79.14	+32.7%	-$40.00
$92.32	+54.8%	-$40.00
$105.51	+76.9%	-$40.00
$118.70	+99.0%	-$40.00

When traders use butterfly on BJRI

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

BJRI thesis for this butterfly

The market-implied 1-standard-deviation range for BJRI extends from approximately $50.52 on the downside to $68.78 on the upside. A BJRI long call butterfly is a pinning play: it pays maximum at the middle strike if BJRI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BJRI IV rank near 43.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on BJRI should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, BJRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BJRI-specific events.

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

Frequently asked questions

What is a butterfly on BJRI?: A butterfly on BJRI is the butterfly strategy applied to BJRI (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 BJRI stock trading near $59.65, the strikes shown on this page are snapped to the nearest listed BJRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BJRI 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 BJRI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.40%), the computed maximum profit is $205.47 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BJRI butterfly?: The breakeven for the BJRI butterfly priced on this page is roughly $57.90 and $62.10 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 BJRI market-implied 1-standard-deviation expected move is approximately 15.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on BJRI?: Butterflies on BJRI are pinning bets - traders use them when they expect BJRI 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 BJRI implied volatility affect this butterfly?: BJRI ATM IV is at 53.40% with IV rank near 43.95%, 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.