How are CPAY 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 CPAY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 34.70%), the computed maximum profit is $1,498.17 per contract and the computed maximum loss is -$435.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CPAY butterfly?

The breakeven for the CPAY butterfly priced on this page is roughly $314.35 and $345.65 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 CPAY market-implied 1-standard-deviation expected move is approximately 9.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CPAY implied volatility affect this butterfly?

CPAY ATM IV is at 34.70% with IV rank near 34.06%, 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.

CPAY Butterfly Strategy

CPAY (Corpay, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024.

CPAY (Corpay, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $21.65B, a trailing P/E of 19.01, a beta of 0.82 versus the broader market, a 52-week range of 252.84-361.99, average daily share volume of 637K, a public-listing history dating back to 2010, approximately 11K full-time employees. These structural characteristics shape how CPAY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places CPAY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on CPAY?

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 CPAY snapshot

As of May 15, 2026, spot at $329.01, ATM IV 34.70%, IV rank 34.06%, expected move 9.95%. The butterfly on CPAY 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 CPAY specifically: CPAY IV at 34.70% 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 9.95% (roughly $32.73 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 CPAY expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPAY should anchor to the underlying notional of $329.01 per share and to the trader's directional view on CPAY stock.

CPAY butterfly setup

The CPAY 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 CPAY near $329.01, the first option leg uses a $310.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPAY 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 CPAY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$310.00	$26.75
Sell 2	Call	$330.00	$14.30
Buy 1	Call	$350.00	$6.20

CPAY butterfly risk and reward

Net Premium / Debit: -$435.00
Max Profit (per contract): $1,498.17
Max Loss (per contract): -$435.00
Breakeven(s): $314.35, $345.65
Risk / Reward Ratio: 3.444

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.

CPAY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CPAY. 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%	-$435.00
$72.75	-77.9%	-$435.00
$145.50	-55.8%	-$435.00
$218.24	-33.7%	-$435.00
$290.99	-11.6%	-$435.00
$363.73	+10.6%	-$435.00
$436.48	+32.7%	-$435.00
$509.22	+54.8%	-$435.00
$581.97	+76.9%	-$435.00
$654.71	+99.0%	-$435.00

When traders use butterfly on CPAY

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

CPAY thesis for this butterfly

The market-implied 1-standard-deviation range for CPAY extends from approximately $296.28 on the downside to $361.74 on the upside. A CPAY long call butterfly is a pinning play: it pays maximum at the middle strike if CPAY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CPAY IV rank near 34.06% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CPAY should anchor more to the directional view and the expected-move geometry. As a Technology name, CPAY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPAY-specific events.

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

Frequently asked questions

What is a butterfly on CPAY?: A butterfly on CPAY is the butterfly strategy applied to CPAY (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 CPAY stock trading near $329.01, the strikes shown on this page are snapped to the nearest listed CPAY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CPAY 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 CPAY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 34.70%), the computed maximum profit is $1,498.17 per contract and the computed maximum loss is -$435.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CPAY butterfly?: The breakeven for the CPAY butterfly priced on this page is roughly $314.35 and $345.65 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 CPAY market-implied 1-standard-deviation expected move is approximately 9.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CPAY?: Butterflies on CPAY are pinning bets - traders use them when they expect CPAY 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 CPAY implied volatility affect this butterfly?: CPAY ATM IV is at 34.70% with IV rank near 34.06%, 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.