How are CACC 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 CACC butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.80%), the computed maximum profit is $1,685.20 per contract and the computed maximum loss is -$2,040.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CACC butterfly?

The breakeven for the CACC butterfly priced on this page is roughly $580.40 and $620.04 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 CACC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CACC implied volatility affect this butterfly?

CACC ATM IV is at 51.80% with IV rank near 37.03%, 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.

CACC Butterfly Strategy

CACC (Credit Acceptance Corporation), in the Financial Services sector, (Financial - Credit Services industry), listed on NASDAQ.

Credit Acceptance Corporation engages in the provision of financing programs, and related products and services in the United States. It advances money to automobile dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps the amount collected from the consumers. The company is also involved in the business of reinsuring coverage under vehicle service contracts sold to consumers by dealers on vehicles financed by the company. It serves independent and franchised automobile dealers. The company was founded in 1972 and is headquartered in Southfield, Michigan.

CACC (Credit Acceptance Corporation) trades in the Financial Services sector, specifically Financial - Credit Services, with a market capitalization of approximately $6.04B, a trailing P/E of 12.05, a beta of 1.35 versus the broader market, a 52-week range of 401.9-668.86, average daily share volume of 159K, a public-listing history dating back to 1992, approximately 2K full-time employees. These structural characteristics shape how CACC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.35 indicates CACC 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 CACC?

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.

CACC snapshot

As of August 14, 2026, spot at $587.97, ATM IV 51.80%, IV rank 37.03%, expected move 14.85%. The butterfly on CACC 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 CACC specifically: CACC IV at 51.80% 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 14.85% (roughly $87.32 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 CACC expiries trade a higher absolute premium for lower per-day decay. Position sizing on CACC should anchor to the underlying notional of $587.97 per share and to the trader's directional view on CACC stock.

CACC butterfly setup

The CACC 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 CACC at $587.97 on that close, the first option leg uses a $560.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CACC 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 CACC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$560.00	$35.70
Sell 2	Call	$600.00	$11.70
Buy 1	Call	$620.00	$8.10

CACC butterfly risk and reward

Net Premium / Debit: -$2,040.00
Max Profit (per contract): $1,685.20
Max Loss (per contract): -$2,040.00
Breakeven(s): $580.40, $620.04
Risk / Reward Ratio: 0.826

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.

CACC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CACC. 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%	-$2,040.00
$130.01	-77.9%	-$2,040.00
$260.01	-55.8%	-$2,040.00
$390.02	-33.7%	-$2,040.00
$520.02	-11.6%	-$2,040.00
$650.02	+10.6%	-$40.00
$780.02	+32.7%	-$40.00
$910.03	+54.8%	-$40.00
$1,040.03	+76.9%	-$40.00
$1,170.03	+99.0%	-$40.00

When traders use butterfly on CACC

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

CACC thesis for this butterfly

The market-implied 1-standard-deviation range for CACC extends from approximately $500.65 on the downside to $675.29 on the upside. A CACC long call butterfly is a pinning play: it pays maximum at the middle strike if CACC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CACC IV rank near 37.03% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CACC should anchor more to the directional view and the expected-move geometry. As a Financial Services name, CACC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CACC-specific events.

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

Frequently asked questions

What is a butterfly on CACC?: A butterfly on CACC is the butterfly strategy applied to CACC (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 CACC stock at $587.97 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CACC chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CACC 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 CACC butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.80%), the computed maximum profit is $1,685.20 per contract and the computed maximum loss is -$2,040.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CACC butterfly?: The breakeven for the CACC butterfly priced on this page is roughly $580.40 and $620.04 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 CACC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CACC?: Butterflies on CACC are pinning bets - traders use them when they expect CACC 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 CACC implied volatility affect this butterfly?: CACC ATM IV is at 51.80% with IV rank near 37.03%, 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.