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 end-of-day chain at a 30-day expiry (ATM IV 47.07%), the computed maximum profit is $922.55 per contract and the computed maximum loss is -$535.00 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 $255.09 and $274.65 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 CEG market-implied 1-standard-deviation expected move is approximately 13.50%; 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 47.07% with IV rank near 36.22%, 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.

CEG Butterfly Strategy

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

Constellation Energy Corporation generates and sells electricity in the United States. The company operates through five segments: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. It sells natural gas, renewable energy, and other energy-related products and services. The company has 32,400 megawatts of generating capacity consisting of nuclear, wind, solar, natural gas, and hydroelectric assets. It serves distribution utilities; municipalities; cooperatives; and commercial, industrial, governmental, and residential customers. The company was incorporated in 2021 and is headquartered in Baltimore, Maryland.

CEG (Constellation Energy Corporation) trades in the Utilities sector, specifically Renewable Utilities, with a market capitalization of approximately $85.85B, a trailing P/E of 36.96, a beta of 1.16 versus the broader market, a 52-week range of 243.3-412.7, average daily share volume of 3.1M, a public-listing history dating back to 2022, approximately 14K 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 1.16 places CEG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.96 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. 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.

Current CEG snapshot

As of May 15, 2026, spot at $266.76, ATM IV 47.07%, IV rank 36.22%, expected move 13.50%. The butterfly on CEG 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 28-day expiry.

Why this butterfly structure on CEG specifically: CEG IV at 47.07% 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 13.50% (roughly $36.00 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 $266.76 per share and to the trader's directional view on CEG stock.

CEG butterfly setup

The CEG 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 CEG near $266.76, the first option leg uses a $255.00 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	$255.00	$21.30
Sell 2	Call	$265.00	$14.90
Buy 1	Call	$280.00	$8.85

CEG butterfly risk and reward

Net Premium / Debit: -$35.00
Max Profit (per contract): $922.55
Max Loss (per contract): -$535.00
Breakeven(s): $255.09, $274.65
Risk / Reward Ratio: 1.724

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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$35.00
$58.99	-77.9%	-$35.00
$117.97	-55.8%	-$35.00
$176.95	-33.7%	-$35.00
$235.93	-11.6%	-$35.00
$294.92	+10.6%	-$535.00
$353.90	+32.7%	-$535.00
$412.88	+54.8%	-$535.00
$471.86	+76.9%	-$535.00
$530.84	+99.0%	-$535.00

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 $230.76 on the downside to $302.76 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 36.22% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CEG should anchor more to the directional view and the expected-move geometry. 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 trading near $266.76, the strikes shown on this page are snapped to the nearest listed CEG chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 47.07%), the computed maximum profit is $922.55 per contract and the computed maximum loss is -$535.00 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 $255.09 and $274.65 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 CEG market-implied 1-standard-deviation expected move is approximately 13.50%; 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 47.07% with IV rank near 36.22%, 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.