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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.90%), the computed maximum profit is $490.81 per contract and the computed maximum loss is -$270.00 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 $149.70 and $160.30 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 CHTR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.88%; 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 51.90% with IV rank near 38.15%, 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.

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 $20.25B, a trailing P/E of 3.66, a beta of 0.68 versus the broader market, a 52-week range of 111.55-285.82, average daily share volume of 3.3M, a public-listing history dating back to 2010, approximately 92K 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 0.68 indicates CHTR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 3.66 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.

CHTR snapshot

As of August 14, 2026, spot at $154.61, ATM IV 51.90%, IV rank 38.15%, expected move 14.88%. The butterfly on CHTR 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 CHTR specifically: CHTR IV at 51.90% 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 14.88% (roughly $23.01 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 CHTR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHTR should anchor to the underlying notional of $154.61 per share and to the trader's directional view on CHTR stock.

CHTR butterfly setup

The CHTR 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 CHTR at $154.61 on that close, the first option leg uses a $147.00 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 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 CHTR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$147.00	$14.25
Sell 2	Call	$155.00	$8.90
Buy 1	Call	$162.50	$6.25

CHTR butterfly risk and reward

Net Premium / Debit: -$270.00
Max Profit (per contract): $490.81
Max Loss (per contract): -$270.00
Breakeven(s): $149.70, $160.30
Risk / Reward Ratio: 1.818

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%	-$270.00
$34.19	-77.9%	-$270.00
$68.38	-55.8%	-$270.00
$102.56	-33.7%	-$270.00
$136.75	-11.6%	-$270.00
$170.93	+10.6%	-$220.00
$205.11	+32.7%	-$220.00
$239.30	+54.8%	-$220.00
$273.48	+76.9%	-$220.00
$307.67	+99.0%	-$220.00

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 $131.60 on the downside to $177.62 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 38.15% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CHTR should anchor more to the directional view and the expected-move geometry. 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 at $154.61 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CHTR chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.90%), the computed maximum profit is $490.81 per contract and the computed maximum loss is -$270.00 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 $149.70 and $160.30 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 CHTR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.88%; 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 51.90% with IV rank near 38.15%, 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.