How are COKE 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 COKE butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.90%), the computed maximum profit is $839.07 per contract and the computed maximum loss is -$75.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a COKE butterfly?

The breakeven for the COKE butterfly priced on this page is roughly $180.58 and $199.48 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 COKE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current COKE implied volatility affect this butterfly?

COKE ATM IV is at 34.90% with IV rank near 27.56%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

COKE Butterfly Strategy

COKE (Coca-Cola Consolidated, Inc.), in the Consumer Defensive sector, (Beverages - Non-Alcoholic industry), listed on NASDAQ.

Coca-Cola Consolidated, Inc. and its affiliates are dedicated to the production, marketing, and distribution of non-alcoholic beverages, predominantly products of The Coca-Cola Company, across the United States. Its extensive product range includes sparkling refreshments like carbonated soft drinks, as well as still beverages such as energy drinks, bottled water, ready-to-drink coffee and tea, enhanced waters, fruit juices, and sports drinks. The company also supplies its offerings to other Coca-Cola bottlers and provides post-mix syrups, which fountain retailers blend with water to create finished beverages for customers. Additionally, it distributes products for other significant beverage brands, notably Dr Pepper and Monster Energy. Coca-Cola Consolidated delivers its items directly to various retail environments, including supermarkets, large department stores, warehouse clubs, convenience stores, and pharmacies, in addition to serving restaurants, educational facilities, amusement parks, recreational venues, and vending machine networks. Originally named Coca-Cola Bottling Co.

COKE (Coca-Cola Consolidated, Inc.) trades in the Consumer Defensive sector, specifically Beverages - Non-Alcoholic, with a market capitalization of approximately $14.85B, a trailing P/E of 22.89, a beta of 0.55 versus the broader market, a 52-week range of 110.6-219.65, average daily share volume of 551K, a public-listing history dating back to 1990, approximately 16K full-time employees. These structural characteristics shape how COKE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.55 indicates COKE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. COKE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on COKE?

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.

COKE snapshot

As of August 14, 2026, spot at $188.19, ATM IV 34.90%, IV rank 27.56%, expected move 10.01%. The butterfly on COKE 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 35-day expiry.

Why this butterfly structure on COKE specifically: COKE IV at 34.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a COKE butterfly, with a market-implied 1-standard-deviation move of approximately 10.01% (roughly $18.83 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated COKE expiries trade a higher absolute premium for lower per-day decay. Position sizing on COKE should anchor to the underlying notional of $188.19 per share and to the trader's directional view on COKE stock.

COKE butterfly setup

The COKE 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 COKE at $188.19 on that close, the first option leg uses a $180.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COKE chain at a 35-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 COKE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$180.00	$12.45
Sell 2	Call	$190.00	$7.60
Buy 1	Call	$200.00	$3.50

COKE butterfly risk and reward

Net Premium / Debit: -$75.00
Max Profit (per contract): $839.07
Max Loss (per contract): -$75.00
Breakeven(s): $180.58, $199.48
Risk / Reward Ratio: 11.188

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.

COKE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on COKE. 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%	-$75.00
$41.62	-77.9%	-$75.00
$83.23	-55.8%	-$75.00
$124.84	-33.7%	-$75.00
$166.44	-11.6%	-$75.00
$208.05	+10.6%	-$75.00
$249.66	+32.7%	-$75.00
$291.27	+54.8%	-$75.00
$332.88	+76.9%	-$75.00
$374.49	+99.0%	-$75.00

When traders use butterfly on COKE

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

COKE thesis for this butterfly

The market-implied 1-standard-deviation range for COKE extends from approximately $169.36 on the downside to $207.02 on the upside. A COKE long call butterfly is a pinning play: it pays maximum at the middle strike if COKE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current COKE IV rank near 27.56% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on COKE at 34.90%. As a Consumer Defensive name, COKE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COKE-specific events.

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

Frequently asked questions

What is a butterfly on COKE?: A butterfly on COKE is the butterfly strategy applied to COKE (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 COKE stock at $188.19 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed COKE chain strike and the premiums come straight from that session's bid/ask midpoint.
How are COKE 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 COKE butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.90%), the computed maximum profit is $839.07 per contract and the computed maximum loss is -$75.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a COKE butterfly?: The breakeven for the COKE butterfly priced on this page is roughly $180.58 and $199.48 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 COKE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on COKE?: Butterflies on COKE are pinning bets - traders use them when they expect COKE 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 COKE implied volatility affect this butterfly?: COKE ATM IV is at 34.90% with IV rank near 27.56%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.