How are CLMT 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 CLMT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 52.20%), the computed maximum profit is $110.89 per contract and the computed maximum loss is -$80.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CLMT butterfly?

The breakeven for the CLMT butterfly priced on this page is roughly $32.20 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 CLMT market-implied 1-standard-deviation expected move is approximately 14.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CLMT implied volatility affect this butterfly?

CLMT ATM IV is at 52.20% with IV rank near 32.53%, 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.

CLMT Butterfly Strategy

CLMT (Calumet, Inc.), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NASDAQ.

Calumet, Inc. manufactures, formulates, and markets slate of specialty branded products to various consumer-facing and industrial markets in North America and internationally. Its Specialty Products and Solutions segment offers various solvents, waxes, customized lubricating oils, white oils, petrolatums, gels, esters, and other products. The company's Montana/Renewables segment focuses on processing renewable feedstocks into renewable hydrogen, renewable natural gas, renewable propane, renewable naphtha, renewable kerosene/aviation fuel, and renewable diesel. This segment also processes Canadian crude oil into conventional gasoline, diesel, jet fuel, and specialty grades of asphalt. Its Performance Brands segment blends, packages, and markets high performance products through Royal Purple, Bel-Ray, and TruFuel brands. Calumet GP, LLC serves as the general partner for Calumet Specialty Products Partners, L.P.

CLMT (Calumet, Inc.) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $2.74B, a beta of 0.72 versus the broader market, a 52-week range of 12.7-36.94, average daily share volume of 1.3M, a public-listing history dating back to 2006, approximately 2K full-time employees. These structural characteristics shape how CLMT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.72 places CLMT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on CLMT?

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 CLMT snapshot

As of May 15, 2026, spot at $31.06, ATM IV 52.20%, IV rank 32.53%, expected move 14.97%. The butterfly on CLMT 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 34-day expiry.

Why this butterfly structure on CLMT specifically: CLMT IV at 52.20% 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 14.97% (roughly $4.65 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CLMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CLMT should anchor to the underlying notional of $31.06 per share and to the trader's directional view on CLMT stock.

CLMT butterfly setup

The CLMT 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 CLMT near $31.06, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CLMT chain at a 34-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 CLMT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$30.00	$2.68
Sell 2	Call	$31.00	$2.08
Buy 1	Call	$33.00	$1.28

CLMT butterfly risk and reward

Net Premium / Debit: +$20.00
Max Profit (per contract): $110.89
Max Loss (per contract): -$80.00
Breakeven(s): $32.20
Risk / Reward Ratio: 1.386

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.

CLMT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CLMT. 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%	+$20.00
$6.88	-77.9%	+$20.00
$13.74	-55.8%	+$20.00
$20.61	-33.6%	+$20.00
$27.48	-11.5%	+$20.00
$34.34	+10.6%	-$80.00
$41.21	+32.7%	-$80.00
$48.08	+54.8%	-$80.00
$54.94	+76.9%	-$80.00
$61.81	+99.0%	-$80.00

When traders use butterfly on CLMT

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

CLMT thesis for this butterfly

The market-implied 1-standard-deviation range for CLMT extends from approximately $26.41 on the downside to $35.71 on the upside. A CLMT long call butterfly is a pinning play: it pays maximum at the middle strike if CLMT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CLMT IV rank near 32.53% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CLMT should anchor more to the directional view and the expected-move geometry. As a Energy name, CLMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CLMT-specific events.

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

Frequently asked questions

What is a butterfly on CLMT?: A butterfly on CLMT is the butterfly strategy applied to CLMT (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 CLMT stock trading near $31.06, the strikes shown on this page are snapped to the nearest listed CLMT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CLMT 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 CLMT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 52.20%), the computed maximum profit is $110.89 per contract and the computed maximum loss is -$80.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CLMT butterfly?: The breakeven for the CLMT butterfly priced on this page is roughly $32.20 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 CLMT market-implied 1-standard-deviation expected move is approximately 14.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CLMT?: Butterflies on CLMT are pinning bets - traders use them when they expect CLMT 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 CLMT implied volatility affect this butterfly?: CLMT ATM IV is at 52.20% with IV rank near 32.53%, 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.