How are CBRL 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 CBRL butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 58.30%), the computed maximum profit is $211.64 per contract and the computed maximum loss is -$15.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CBRL butterfly?

The breakeven for the CBRL butterfly priced on this page is roughly $55.05 and $59.88 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 CBRL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CBRL implied volatility affect this butterfly?

CBRL ATM IV is at 58.30% with IV rank near 22.42%, 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.

CBRL Butterfly Strategy

CBRL (Cracker Barrel Old Country Store), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.

Cracker Barrel Old Country Store, Inc. develops and operates the Cracker Barrel Old Country Store concept in the United States. Its Cracker Barrel stores consist of restaurants with a gift shop. The company’s restaurants serve breakfast, lunch, and dinner, as well as dine-in, pick-up, and delivery services. Its gift shops offer various decorative and functional items, such as rocking chairs, seasonal gifts, apparel, toys, food, cookware, and various other gift items, as well as various candies, preserves, and other food items. Cracker Barrel Old Country Store, Inc. was incorporated in 1969 and is headquartered in Lebanon, Tennessee.

CBRL (Cracker Barrel Old Country Store) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $1.31B, a trailing P/E of 50.06, a beta of 1.19 versus the broader market, a 52-week range of 24.85-63.61, average daily share volume of 1.2M, a public-listing history dating back to 1981, approximately 77K full-time employees. These structural characteristics shape how CBRL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.19 places CBRL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 50.06 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. CBRL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on CBRL?

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.

CBRL snapshot

As of August 14, 2026, spot at $57.44, ATM IV 58.30%, IV rank 22.42%, expected move 16.71%. The butterfly on CBRL 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 CBRL specifically: CBRL IV at 58.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a CBRL butterfly, with a market-implied 1-standard-deviation move of approximately 16.71% (roughly $9.60 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 CBRL expiries trade a higher absolute premium for lower per-day decay. Position sizing on CBRL should anchor to the underlying notional of $57.44 per share and to the trader's directional view on CBRL stock.

CBRL butterfly setup

The CBRL 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 CBRL at $57.44 on that close, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CBRL 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 CBRL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$55.00	$5.50
Sell 2	Call	$57.50	$4.20
Buy 1	Call	$60.00	$3.05

CBRL butterfly risk and reward

Net Premium / Debit: -$15.00
Max Profit (per contract): $211.64
Max Loss (per contract): -$15.00
Breakeven(s): $55.05, $59.88
Risk / Reward Ratio: 14.109

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.

CBRL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CBRL. 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%	-$15.00
$12.71	-77.9%	-$15.00
$25.41	-55.8%	-$15.00
$38.11	-33.7%	-$15.00
$50.81	-11.5%	-$15.00
$63.51	+10.6%	-$15.00
$76.21	+32.7%	-$15.00
$88.90	+54.8%	-$15.00
$101.60	+76.9%	-$15.00
$114.30	+99.0%	-$15.00

When traders use butterfly on CBRL

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

CBRL thesis for this butterfly

The market-implied 1-standard-deviation range for CBRL extends from approximately $47.84 on the downside to $67.04 on the upside. A CBRL long call butterfly is a pinning play: it pays maximum at the middle strike if CBRL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CBRL IV rank near 22.42% 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 CBRL at 58.30%. As a Consumer Cyclical name, CBRL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CBRL-specific events.

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

Frequently asked questions

What is a butterfly on CBRL?: A butterfly on CBRL is the butterfly strategy applied to CBRL (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 CBRL stock at $57.44 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CBRL chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CBRL 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 CBRL butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 58.30%), the computed maximum profit is $211.64 per contract and the computed maximum loss is -$15.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CBRL butterfly?: The breakeven for the CBRL butterfly priced on this page is roughly $55.05 and $59.88 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 CBRL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CBRL?: Butterflies on CBRL are pinning bets - traders use them when they expect CBRL 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 CBRL implied volatility affect this butterfly?: CBRL ATM IV is at 58.30% with IV rank near 22.42%, 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.