How are CHTR 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 CHTR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 79.31%), the computed maximum profit is $429.55 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 CHTR butterfly?

The breakeven for the CHTR butterfly priced on this page is roughly $140.15 and $150.10 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 CHTR market-implied 1-standard-deviation expected move is approximately 22.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHTR implied volatility affect this butterfly?

CHTR ATM IV is at 79.31% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

CHTR Butterfly Strategy

CHTR (Charter Communications, Inc.), in the Communication Services sector, (Telecommunications Services industry), listed on NASDAQ.

Charter Communications, Inc. is a prominent U.S. broadband and cable operator, delivering services to residential and commercial customers nationwide. Its offerings encompass a wide array of subscription video services, including on-demand content, high-definition channels, digital video recording (DVR), and pay-per-view options. Internet services form a crucial part of its portfolio, featuring robust security measures against cyber threats, high-performance in-home WiFi with provided routers, and extensive out-of-home and Spectrum WiFi access. The company also provides voice communication services utilizing Voice over Internet Protocol (VoIP) technology. For its business and carrier clientele, Charter offers comprehensive broadband communication solutions. These include internet access, data networking, fiber optic connectivity, video entertainment, and business telephone services, catering to a diverse range of needs from office buildings to cellular towers.

CHTR (Charter Communications, Inc.) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $18.87B, a trailing P/E of 3.40, a beta of 0.71 versus the broader market, a 52-week range of 124.05-422.29, average daily share volume of 3.3M, a public-listing history dating back to 2010, approximately 95K full-time employees. These structural characteristics shape how CHTR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.71 places CHTR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 3.40 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a butterfly on CHTR?

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 CHTR snapshot

As of June 29, 2026, spot at $145.17, ATM IV 79.31%, IV rank 100.00%, expected move 22.74%. The butterfly on CHTR 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 32-day expiry.

Why this butterfly structure on CHTR specifically: CHTR IV at 79.31% is rich versus its 1-year range, which makes a premium-buying CHTR butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 22.74% (roughly $33.01 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CHTR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHTR should anchor to the underlying notional of $145.17 per share and to the trader's directional view on CHTR stock.

CHTR butterfly setup

The CHTR 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 CHTR near $145.17, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHTR chain at a 32-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 CHTR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$140.00	$15.60
Sell 2	Call	$145.00	$13.90
Buy 1	Call	$150.00	$12.35

CHTR butterfly risk and reward

Net Premium / Debit: -$15.00
Max Profit (per contract): $429.55
Max Loss (per contract): -$15.00
Breakeven(s): $140.15, $150.10
Risk / Reward Ratio: 28.637

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.

CHTR butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CHTR. 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
$32.11	-77.9%	-$15.00
$64.20	-55.8%	-$15.00
$96.30	-33.7%	-$15.00
$128.40	-11.6%	-$15.00
$160.49	+10.6%	-$15.00
$192.59	+32.7%	-$15.00
$224.69	+54.8%	-$15.00
$256.78	+76.9%	-$15.00
$288.88	+99.0%	-$15.00

When traders use butterfly on CHTR

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

CHTR thesis for this butterfly

The market-implied 1-standard-deviation range for CHTR extends from approximately $112.16 on the downside to $178.18 on the upside. A CHTR long call butterfly is a pinning play: it pays maximum at the middle strike if CHTR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CHTR IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on CHTR at 79.31%. As a Communication Services name, CHTR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHTR-specific events.

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

Frequently asked questions

What is a butterfly on CHTR?: A butterfly on CHTR is the butterfly strategy applied to CHTR (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 CHTR stock trading near $145.17, the strikes shown on this page are snapped to the nearest listed CHTR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHTR 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 CHTR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 79.31%), the computed maximum profit is $429.55 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 CHTR butterfly?: The breakeven for the CHTR butterfly priced on this page is roughly $140.15 and $150.10 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 CHTR market-implied 1-standard-deviation expected move is approximately 22.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CHTR?: Butterflies on CHTR are pinning bets - traders use them when they expect CHTR 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 CHTR implied volatility affect this butterfly?: CHTR ATM IV is at 79.31% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.