How are CNX 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 CNX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 32.00%), the computed maximum profit is $123.42 per contract and the computed maximum loss is -$60.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CNX butterfly?

The breakeven for the CNX butterfly priced on this page is roughly $32.60 and $35.40 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 CNX market-implied 1-standard-deviation expected move is approximately 9.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CNX implied volatility affect this butterfly?

CNX ATM IV is at 32.00% with IV rank near 31.65%, 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.

CNX Butterfly Strategy

CNX (CNX Resources Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.

CNX Resources Corporation operates as an independent company primarily focused on natural gas and midstream activities. Its core business involves the acquisition, exploration, development, and production of natural gas properties, predominantly situated within the Appalachian Basin. The company's operations are structured into two distinct segments: Shale and Coalbed Methane. CNX is a producer and supplier of pipeline-grade natural gas, primarily serving wholesale customers. Its extensive asset portfolio includes significant natural gas extraction rights. Specifically, it holds mineral rights across: Approximately 526,000 net acres in the Marcellus Shale, located in Pennsylvania, West Virginia, and Ohio.

CNX (CNX Resources Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $4.77B, a trailing P/E of 3.88, a beta of 0.59 versus the broader market, a 52-week range of 27.72-43.62, average daily share volume of 1.9M, a public-listing history dating back to 1999, approximately 458 full-time employees. These structural characteristics shape how CNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.59 indicates CNX 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 3.88 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 CNX?

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 CNX snapshot

As of June 30, 2026, spot at $34.00, ATM IV 32.00%, IV rank 31.65%, expected move 9.17%. The butterfly on CNX 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 CNX specifically: CNX IV at 32.00% 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 9.17% (roughly $3.12 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 CNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNX should anchor to the underlying notional of $34.00 per share and to the trader's directional view on CNX stock.

CNX butterfly setup

The CNX 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 CNX near $34.00, the first option leg uses a $32.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNX 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 CNX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$32.00	$2.23
Sell 2	Call	$34.00	$0.95
Buy 1	Call	$36.00	$0.28

CNX butterfly risk and reward

Net Premium / Debit: -$60.00
Max Profit (per contract): $123.42
Max Loss (per contract): -$60.00
Breakeven(s): $32.60, $35.40
Risk / Reward Ratio: 2.057

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.

CNX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CNX. 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%	-$60.00
$7.53	-77.9%	-$60.00
$15.04	-55.8%	-$60.00
$22.56	-33.6%	-$60.00
$30.08	-11.5%	-$60.00
$37.59	+10.6%	-$60.00
$45.11	+32.7%	-$60.00
$52.63	+54.8%	-$60.00
$60.14	+76.9%	-$60.00
$67.66	+99.0%	-$60.00

When traders use butterfly on CNX

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

CNX thesis for this butterfly

The market-implied 1-standard-deviation range for CNX extends from approximately $30.88 on the downside to $37.12 on the upside. A CNX long call butterfly is a pinning play: it pays maximum at the middle strike if CNX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CNX IV rank near 31.65% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CNX should anchor more to the directional view and the expected-move geometry. As a Energy name, CNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNX-specific events.

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

Frequently asked questions

What is a butterfly on CNX?: A butterfly on CNX is the butterfly strategy applied to CNX (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 CNX stock trading near $34.00, the strikes shown on this page are snapped to the nearest listed CNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CNX 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 CNX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 32.00%), the computed maximum profit is $123.42 per contract and the computed maximum loss is -$60.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CNX butterfly?: The breakeven for the CNX butterfly priced on this page is roughly $32.60 and $35.40 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 CNX market-implied 1-standard-deviation expected move is approximately 9.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CNX?: Butterflies on CNX are pinning bets - traders use them when they expect CNX 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 CNX implied volatility affect this butterfly?: CNX ATM IV is at 32.00% with IV rank near 31.65%, 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.