How are BURL 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 BURL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.16%), the computed maximum profit is $1,315.96 per contract and the computed maximum loss is -$175.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BURL butterfly?

The breakeven for the BURL butterfly priced on this page is roughly $301.55 and $328.45 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 BURL market-implied 1-standard-deviation expected move is approximately 10.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BURL implied volatility affect this butterfly?

BURL ATM IV is at 36.16% with IV rank near 33.67%, 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.

BURL Butterfly Strategy

BURL (Burlington Stores, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NYSE.

Burlington Stores, Inc. operates as a prominent retail chain across the United States, offering a diverse selection of branded apparel and other consumer products. Its merchandise is heavily focused on current fashion trends, providing items such as women's ready-to-wear, men's clothing, youth apparel, footwear, accessories, and outerwear. Additionally, the company stocks toys, gifts, and various products for the home, baby, and beauty categories. As of January 29, 2022, Burlington Stores, Inc. maintained an extensive network of 837 outlets under its flagship Burlington Stores brand, two Cohoes Fashions locations, and a single MJM Designer Shoes store. These establishments are situated throughout 45 U.S. states and Puerto Rico. The enterprise was founded in 1972 and is headquartered in Burlington, New Jersey.

BURL (Burlington Stores, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $20.19B, a trailing P/E of 32.97, a beta of 1.46 versus the broader market, a 52-week range of 228.46-351.85, average daily share volume of 791K, a public-listing history dating back to 2013, approximately 17K full-time employees. These structural characteristics shape how BURL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.46 indicates BURL 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 BURL?

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 BURL snapshot

As of June 29, 2026, spot at $313.51, ATM IV 36.16%, IV rank 33.67%, expected move 10.37%. The butterfly on BURL 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 32-day expiry.

Why this butterfly structure on BURL specifically: BURL IV at 36.16% 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 10.37% (roughly $32.51 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BURL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BURL should anchor to the underlying notional of $313.51 per share and to the trader's directional view on BURL stock.

BURL butterfly setup

The BURL 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 BURL near $313.51, the first option leg uses a $300.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BURL chain at a 32-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 BURL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$300.00	$20.95
Sell 2	Call	$315.00	$13.60
Buy 1	Call	$330.00	$8.00

BURL butterfly risk and reward

Net Premium / Debit: -$175.00
Max Profit (per contract): $1,315.96
Max Loss (per contract): -$175.00
Breakeven(s): $301.55, $328.45
Risk / Reward Ratio: 7.520

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.

BURL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on BURL. 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%	-$175.00
$69.33	-77.9%	-$175.00
$138.65	-55.8%	-$175.00
$207.96	-33.7%	-$175.00
$277.28	-11.6%	-$175.00
$346.60	+10.6%	-$175.00
$415.92	+32.7%	-$175.00
$485.23	+54.8%	-$175.00
$554.55	+76.9%	-$175.00
$623.87	+99.0%	-$175.00

When traders use butterfly on BURL

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

BURL thesis for this butterfly

The market-implied 1-standard-deviation range for BURL extends from approximately $281.00 on the downside to $346.02 on the upside. A BURL long call butterfly is a pinning play: it pays maximum at the middle strike if BURL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BURL IV rank near 33.67% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on BURL should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, BURL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BURL-specific events.

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

Frequently asked questions

What is a butterfly on BURL?: A butterfly on BURL is the butterfly strategy applied to BURL (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 BURL stock trading near $313.51, the strikes shown on this page are snapped to the nearest listed BURL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BURL 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 BURL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.16%), the computed maximum profit is $1,315.96 per contract and the computed maximum loss is -$175.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BURL butterfly?: The breakeven for the BURL butterfly priced on this page is roughly $301.55 and $328.45 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 BURL market-implied 1-standard-deviation expected move is approximately 10.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on BURL?: Butterflies on BURL are pinning bets - traders use them when they expect BURL 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 BURL implied volatility affect this butterfly?: BURL ATM IV is at 36.16% with IV rank near 33.67%, 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.