How are BRZE 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 BRZE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 90.40%), the computed maximum profit is $122.50 per contract and the computed maximum loss is -$127.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BRZE butterfly?

The breakeven for the BRZE butterfly priced on this page is roughly $21.23 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 BRZE market-implied 1-standard-deviation expected move is approximately 25.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BRZE implied volatility affect this butterfly?

BRZE ATM IV is at 90.40% with IV rank near 66.82%, 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.

BRZE Butterfly Strategy

BRZE (Braze, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. It offers data ingestion products, such as Braze software development kits that automatically manage data ingestion and the delivery of mobile and web notifications, in-application/in-browser interstitial messages, and content cards, as well as can be integrated into a range of digital interfaces and application development frameworks; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; and partner cohort syncing, which allow brands to sync user cohorts from partners. The company also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators, and helps to understand the factors that determine which consumers belong to a particular segment; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, it provides personalization and action products; and orchestration products, which include Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences, which include onboarding flows, nurture campaigns, win-back strategies, and others; campaigns, which allow customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; frequency capping and rate limiting; intelligent selection; and reporting and analytics. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.

BRZE (Braze, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $2.20B, a beta of 0.77 versus the broader market, a 52-week range of 15.26-37.67, average daily share volume of 3.1M, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how BRZE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.77 places BRZE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on BRZE?

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 BRZE snapshot

As of May 15, 2026, spot at $20.88, ATM IV 90.40%, IV rank 66.82%, expected move 25.92%. The butterfly on BRZE 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 34-day expiry.

Why this butterfly structure on BRZE specifically: BRZE IV at 90.40% 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 25.92% (roughly $5.41 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BRZE expiries trade a higher absolute premium for lower per-day decay. Position sizing on BRZE should anchor to the underlying notional of $20.88 per share and to the trader's directional view on BRZE stock.

BRZE butterfly setup

The BRZE 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 BRZE near $20.88, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BRZE chain at a 34-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 BRZE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$20.00	$2.88
Sell 2	Call	$20.00	$2.88
Buy 1	Call	$22.50	$1.65

BRZE butterfly risk and reward

Net Premium / Debit: +$122.50
Max Profit (per contract): $122.50
Max Loss (per contract): -$127.50
Breakeven(s): $21.23
Risk / Reward Ratio: 0.961

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.

BRZE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on BRZE. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$122.50
$4.63	-77.8%	+$122.50
$9.24	-55.7%	+$122.50
$13.86	-33.6%	+$122.50
$18.47	-11.5%	+$122.50
$23.09	+10.6%	-$127.50
$27.70	+32.7%	-$127.50
$32.32	+54.8%	-$127.50
$36.93	+76.9%	-$127.50
$41.55	+99.0%	-$127.50

When traders use butterfly on BRZE

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

BRZE thesis for this butterfly

The market-implied 1-standard-deviation range for BRZE extends from approximately $15.47 on the downside to $26.29 on the upside. A BRZE long call butterfly is a pinning play: it pays maximum at the middle strike if BRZE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BRZE IV rank near 66.82% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on BRZE should anchor more to the directional view and the expected-move geometry. As a Technology name, BRZE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BRZE-specific events.

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

Frequently asked questions

What is a butterfly on BRZE?: A butterfly on BRZE is the butterfly strategy applied to BRZE (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 BRZE stock trading near $20.88, the strikes shown on this page are snapped to the nearest listed BRZE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BRZE 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 BRZE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 90.40%), the computed maximum profit is $122.50 per contract and the computed maximum loss is -$127.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BRZE butterfly?: The breakeven for the BRZE butterfly priced on this page is roughly $21.23 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 BRZE market-implied 1-standard-deviation expected move is approximately 25.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on BRZE?: Butterflies on BRZE are pinning bets - traders use them when they expect BRZE 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 BRZE implied volatility affect this butterfly?: BRZE ATM IV is at 90.40% with IV rank near 66.82%, 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.