How are CHDN 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 CHDN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 34.40%), the computed maximum profit is $324.18 per contract and the computed maximum loss is -$150.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CHDN butterfly?

The breakeven for the CHDN butterfly priced on this page is roughly $86.50 and $93.50 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 CHDN market-implied 1-standard-deviation expected move is approximately 9.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHDN implied volatility affect this butterfly?

CHDN ATM IV is at 34.40% with IV rank near 52.11%, 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.

CHDN Butterfly Strategy

CHDN (Churchill Downs Incorporated), in the Consumer Cyclical sector, (Gambling, Resorts & Casinos industry), listed on NASDAQ.

Churchill Downs Incorporated (CDI) is a leading U.S. entertainment enterprise focused on horse racing, online wagering, and general gaming activities. Its extensive operations are categorized into three main divisions: Live and Historical Racing, TwinSpires, and Gaming. As of December 31, 2021, CDI's portfolio included three pari-mutuel gaming venues in Kentucky, collectively featuring approximately 3,050 historical racing machines. The company also operates TwinSpires, a comprehensive digital platform offering betting on horse races, sports, and iGaming. Furthermore, CDI manages nine brick-and-mortar sportsbooks and runs casino gaming across eight states, housing around 11,000 slot machines and video lottery terminals, in addition to 200 table games. Beyond these core ventures, Churchill Downs Incorporated delivers streaming video of live horse races and replays, along with a wide array of racing and handicapping information.

CHDN (Churchill Downs Incorporated) trades in the Consumer Cyclical sector, specifically Gambling, Resorts & Casinos, with a market capitalization of approximately $6.20B, a trailing P/E of 16.14, a beta of 0.68 versus the broader market, a 52-week range of 80.24-118.46, average daily share volume of 999K, a public-listing history dating back to 1993, approximately 6K full-time employees. These structural characteristics shape how CHDN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.68 indicates CHDN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CHDN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on CHDN?

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 CHDN snapshot

As of June 30, 2026, spot at $90.19, ATM IV 34.40%, IV rank 52.11%, expected move 9.86%. The butterfly on CHDN 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 17-day expiry.

Why this butterfly structure on CHDN specifically: CHDN IV at 34.40% 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 9.86% (roughly $8.89 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CHDN expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHDN should anchor to the underlying notional of $90.19 per share and to the trader's directional view on CHDN stock.

CHDN butterfly setup

The CHDN 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 CHDN near $90.19, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHDN chain at a 17-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 CHDN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$85.00	$6.30
Sell 2	Call	$90.00	$2.95
Buy 1	Call	$95.00	$1.10

CHDN butterfly risk and reward

Net Premium / Debit: -$150.00
Max Profit (per contract): $324.18
Max Loss (per contract): -$150.00
Breakeven(s): $86.50, $93.50
Risk / Reward Ratio: 2.161

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.

CHDN butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CHDN. 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%	-$150.00
$19.95	-77.9%	-$150.00
$39.89	-55.8%	-$150.00
$59.83	-33.7%	-$150.00
$79.77	-11.6%	-$150.00
$99.71	+10.6%	-$150.00
$119.65	+32.7%	-$150.00
$139.59	+54.8%	-$150.00
$159.53	+76.9%	-$150.00
$179.47	+99.0%	-$150.00

When traders use butterfly on CHDN

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

CHDN thesis for this butterfly

The market-implied 1-standard-deviation range for CHDN extends from approximately $81.30 on the downside to $99.08 on the upside. A CHDN long call butterfly is a pinning play: it pays maximum at the middle strike if CHDN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CHDN IV rank near 52.11% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CHDN should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, CHDN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHDN-specific events.

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

Frequently asked questions

What is a butterfly on CHDN?: A butterfly on CHDN is the butterfly strategy applied to CHDN (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 CHDN stock trading near $90.19, the strikes shown on this page are snapped to the nearest listed CHDN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHDN 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 CHDN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 34.40%), the computed maximum profit is $324.18 per contract and the computed maximum loss is -$150.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CHDN butterfly?: The breakeven for the CHDN butterfly priced on this page is roughly $86.50 and $93.50 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 CHDN market-implied 1-standard-deviation expected move is approximately 9.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CHDN?: Butterflies on CHDN are pinning bets - traders use them when they expect CHDN 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 CHDN implied volatility affect this butterfly?: CHDN ATM IV is at 34.40% with IV rank near 52.11%, 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.