How are CLS 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 CLS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 88.35%), the computed maximum profit is $1,676.91 per contract and the computed maximum loss is -$305.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CLS butterfly?

The breakeven for the CLS butterfly priced on this page is roughly $348.05 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 CLS market-implied 1-standard-deviation expected move is approximately 25.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CLS implied volatility affect this butterfly?

CLS ATM IV is at 88.35% with IV rank near 93.84%, 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.

CLS Butterfly Strategy

CLS (Celestica Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NYSE.

Headquartered in Toronto, Canada, and established in 1994, Celestica Inc. delivers comprehensive hardware platform and supply chain solutions to clients across North America, Europe, and Asia. The company operates through two key segments: Advanced Technology Solutions and Connectivity & Cloud Solutions. Celestica's extensive service portfolio encompasses the entire product lifecycle, from initial design and development, engineering, and supply chain management to new product introduction, component sourcing, electronic manufacturing and assembly, rigorous testing, complex mechanical integration, and systems integration. Further offerings include precision machining, order fulfillment, logistics, asset management, product licensing, and post-market repair and return services. Additionally, Celestica provides a wide array of products, including enterprise-grade data communication and information processing infrastructure such as routers, switches, data center interconnects, edge solutions, servers, and storage products. They also supply individual electronic components like capacitors, microprocessors, resistors, and memory modules, alongside power inverters, energy storage products, and smart meters.

CLS (Celestica Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $38.81B, a trailing P/E of 40.41, a beta of 1.48 versus the broader market, a 52-week range of 144.27-474.03, average daily share volume of 2.3M, a public-listing history dating back to 1998, approximately 22K full-time employees. These structural characteristics shape how CLS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.48 indicates CLS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 40.41 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.

What is a butterfly on CLS?

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 CLS snapshot

As of June 30, 2026, spot at $363.35, ATM IV 88.35%, IV rank 93.84%, expected move 25.33%. The butterfly on CLS 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 31-day expiry.

Why this butterfly structure on CLS specifically: CLS IV at 88.35% is rich versus its 1-year range, which makes a premium-buying CLS butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 25.33% (roughly $92.03 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CLS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CLS should anchor to the underlying notional of $363.35 per share and to the trader's directional view on CLS stock.

CLS butterfly setup

The CLS 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 CLS near $363.35, the first option leg uses a $345.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CLS chain at a 31-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 CLS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$345.00	$46.95
Sell 2	Call	$365.00	$37.25
Buy 1	Call	$380.00	$30.60

CLS butterfly risk and reward

Net Premium / Debit: -$305.00
Max Profit (per contract): $1,676.91
Max Loss (per contract): -$305.00
Breakeven(s): $348.05
Risk / Reward Ratio: 5.498

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.

CLS butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CLS. 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%	-$305.00
$80.35	-77.9%	-$305.00
$160.69	-55.8%	-$305.00
$241.02	-33.7%	-$305.00
$321.36	-11.6%	-$305.00
$401.70	+10.6%	+$195.00
$482.04	+32.7%	+$195.00
$562.37	+54.8%	+$195.00
$642.71	+76.9%	+$195.00
$723.05	+99.0%	+$195.00

When traders use butterfly on CLS

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

CLS thesis for this butterfly

The market-implied 1-standard-deviation range for CLS extends from approximately $271.32 on the downside to $455.38 on the upside. A CLS long call butterfly is a pinning play: it pays maximum at the middle strike if CLS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CLS IV rank near 93.84% 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 CLS at 88.35%. As a Technology name, CLS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CLS-specific events.

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

Frequently asked questions

What is a butterfly on CLS?: A butterfly on CLS is the butterfly strategy applied to CLS (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 CLS stock trading near $363.35, the strikes shown on this page are snapped to the nearest listed CLS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CLS 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 CLS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 88.35%), the computed maximum profit is $1,676.91 per contract and the computed maximum loss is -$305.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CLS butterfly?: The breakeven for the CLS butterfly priced on this page is roughly $348.05 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 CLS market-implied 1-standard-deviation expected move is approximately 25.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CLS?: Butterflies on CLS are pinning bets - traders use them when they expect CLS 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 CLS implied volatility affect this butterfly?: CLS ATM IV is at 88.35% with IV rank near 93.84%, 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.