How are BKE 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 BKE butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.10%), the computed maximum profit is $160.02 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BKE butterfly?

The breakeven for the BKE butterfly priced on this page is roughly $43.20 and $46.80 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 BKE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BKE implied volatility affect this butterfly?

BKE ATM IV is at 34.10% with IV rank near 4.36%, 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.

BKE Butterfly Strategy

BKE (The Buckle, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NYSE.

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for men, women, and kids under the Buckle and Buckle Youth brands in the United States. The company markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise comprising the BKE, Buckle Black, Ace High, Daytrip, Departwest, FITZ + EDDI, Freshwear, Gentry Country, Gilded Intent, Gimmicks, J.B. Holt, Maven Co-op, Modish Rebel, Nova Industries, Outpost Makers, Reclaim, Salvage, Sterling & Stitch, Veece, Willow & Root, 33 Coastal, and Funk Lagoon brands. It also provides services, such as hemming, gift-packaging, layaways, a guest loyalty program, the Buckle private label credit card, personalized stylist services, and a special-order system that allows stores to obtain specifically requested merchandise from other company stores or from its online order fulfillment center. The company was formerly known as Mills Clothing, Inc. and changed its name to The Buckle, Inc. in April 1991. The Buckle, Inc. was incorporated in 1948 and is headquartered in Kearney, Nebraska.

BKE (The Buckle, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $2.33B, a trailing P/E of 10.36, a beta of 1.01 versus the broader market, a 52-week range of 40.73-61.69, average daily share volume of 470K, a public-listing history dating back to 1992, approximately 8K full-time employees. These structural characteristics shape how BKE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.01 places BKE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.36 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. BKE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on BKE?

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.

BKE snapshot

As of August 14, 2026, spot at $44.13, ATM IV 34.10%, IV rank 4.36%, expected move 9.78%. The butterfly on BKE 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 BKE specifically: BKE IV at 34.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a BKE butterfly, with a market-implied 1-standard-deviation move of approximately 9.78% (roughly $4.31 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 BKE expiries trade a higher absolute premium for lower per-day decay. Position sizing on BKE should anchor to the underlying notional of $44.13 per share and to the trader's directional view on BKE stock.

BKE butterfly setup

The BKE 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 BKE at $44.13 on that close, the first option leg uses a $42.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BKE 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 BKE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$42.50	$3.03
Sell 2	Call	$45.00	$1.55
Buy 1	Call	$47.50	$0.78

BKE butterfly risk and reward

Net Premium / Debit: -$70.00
Max Profit (per contract): $160.02
Max Loss (per contract): -$70.00
Breakeven(s): $43.20, $46.80
Risk / Reward Ratio: 2.286

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.

BKE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on BKE. 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%	-$70.00
$9.77	-77.9%	-$70.00
$19.52	-55.8%	-$70.00
$29.28	-33.7%	-$70.00
$39.04	-11.5%	-$70.00
$48.79	+10.6%	-$70.00
$58.55	+32.7%	-$70.00
$68.30	+54.8%	-$70.00
$78.06	+76.9%	-$70.00
$87.82	+99.0%	-$70.00

When traders use butterfly on BKE

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

BKE thesis for this butterfly

The market-implied 1-standard-deviation range for BKE extends from approximately $39.82 on the downside to $48.44 on the upside. A BKE long call butterfly is a pinning play: it pays maximum at the middle strike if BKE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BKE IV rank near 4.36% 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 BKE at 34.10%. As a Consumer Cyclical name, BKE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BKE-specific events.

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

Frequently asked questions

What is a butterfly on BKE?: A butterfly on BKE is the butterfly strategy applied to BKE (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 BKE stock at $44.13 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BKE chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BKE 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 BKE butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.10%), the computed maximum profit is $160.02 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BKE butterfly?: The breakeven for the BKE butterfly priced on this page is roughly $43.20 and $46.80 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 BKE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on BKE?: Butterflies on BKE are pinning bets - traders use them when they expect BKE 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 BKE implied volatility affect this butterfly?: BKE ATM IV is at 34.10% with IV rank near 4.36%, 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.