How are CEG 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 CEG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 39.27%), the computed maximum profit is $1,250.91 per contract and the computed maximum loss is -$230.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CEG butterfly?

The breakeven for the CEG butterfly priced on this page is roughly $272.30 and $297.70 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 CEG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CEG implied volatility affect this butterfly?

CEG ATM IV is at 39.27% with IV rank near 2.14%, 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.

CEG Butterfly Strategy

CEG (Constellation Energy Corporation), in the Utilities sector, (Independent Power Producers industry), listed on NASDAQ.

Constellation Energy Corporation operates as a U.S.-based firm dedicated to producing and distributing electricity. Its activities are organized across five primary geographical segments: the Mid-Atlantic, Midwest, New York, ERCOT, and various other power markets. In addition to electrical power, the company supplies natural gas, sustainable energy solutions, and an array of associated energy products and services. Possessing a significant generation capability of 32,400 megawatts, its power portfolio incorporates diverse sources such as nuclear, wind, solar, natural gas, and hydroelectric facilities. The company serves a wide spectrum of clients, including utility distributors, local government bodies, cooperatives, along with commercial, industrial, public sector, and household consumers. Founded in 2021, its corporate headquarters are situated in Baltimore, Maryland.

CEG (Constellation Energy Corporation) trades in the Utilities sector, specifically Independent Power Producers, with a market capitalization of approximately $101.45B, a trailing P/E of 28.75, a beta of 1.12 versus the broader market, a 52-week range of 228.63-412.7, average daily share volume of 3.4M, a public-listing history dating back to 2022, approximately 15K full-time employees. These structural characteristics shape how CEG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.12 places CEG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CEG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on CEG?

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.

CEG snapshot

As of August 14, 2026, spot at $283.76, ATM IV 39.27%, IV rank 2.14%, expected move 11.26%. The butterfly on CEG 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 28-day expiry.

Why this butterfly structure on CEG specifically: CEG IV at 39.27% is on the cheap side of its 1-year range, which favors premium-buying structures like a CEG butterfly, with a market-implied 1-standard-deviation move of approximately 11.26% (roughly $31.94 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CEG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CEG should anchor to the underlying notional of $283.76 per share and to the trader's directional view on CEG stock.

CEG butterfly setup

The CEG 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 CEG at $283.76 on that close, the first option leg uses a $270.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CEG chain at a 28-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 CEG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$270.00	$20.50
Sell 2	Call	$285.00	$12.20
Buy 1	Call	$300.00	$6.20

CEG butterfly risk and reward

Net Premium / Debit: -$230.00
Max Profit (per contract): $1,250.91
Max Loss (per contract): -$230.00
Breakeven(s): $272.30, $297.70
Risk / Reward Ratio: 5.439

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.

CEG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CEG. 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%	-$230.00
$62.75	-77.9%	-$230.00
$125.49	-55.8%	-$230.00
$188.23	-33.7%	-$230.00
$250.97	-11.6%	-$230.00
$313.71	+10.6%	-$230.00
$376.45	+32.7%	-$230.00
$439.19	+54.8%	-$230.00
$501.93	+76.9%	-$230.00
$564.67	+99.0%	-$230.00

When traders use butterfly on CEG

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

CEG thesis for this butterfly

The market-implied 1-standard-deviation range for CEG extends from approximately $251.82 on the downside to $315.70 on the upside. A CEG long call butterfly is a pinning play: it pays maximum at the middle strike if CEG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CEG IV rank near 2.14% 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 CEG at 39.27%. As a Utilities name, CEG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CEG-specific events.

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

Frequently asked questions

What is a butterfly on CEG?: A butterfly on CEG is the butterfly strategy applied to CEG (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 CEG stock at $283.76 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CEG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CEG 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 CEG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 39.27%), the computed maximum profit is $1,250.91 per contract and the computed maximum loss is -$230.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CEG butterfly?: The breakeven for the CEG butterfly priced on this page is roughly $272.30 and $297.70 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 CEG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CEG?: Butterflies on CEG are pinning bets - traders use them when they expect CEG 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 CEG implied volatility affect this butterfly?: CEG ATM IV is at 39.27% with IV rank near 2.14%, 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.