How are CPB 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 CPB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 44.85%), the computed maximum profit is $216.46 per contract and the computed maximum loss is $125.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CPB butterfly?

The breakeven for the CPB butterfly priced on this page is no defined breakeven on the modeled curve 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 CPB market-implied 1-standard-deviation expected move is approximately 12.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CPB implied volatility affect this butterfly?

CPB ATM IV is at 44.85% with IV rank near 93.44%, 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.

CPB Butterfly Strategy

CPB (Campbell Soup Company), in the Consumer Defensive sector, (Packaged Foods industry), listed on NASDAQ.

Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products the United States and internationally. The company operates through Meals & Beverages and Snacks segments. The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada. This segment provides Campbell's condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups, and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell's gravies, pasta, beans, and dinner sauces; Swanson canned poultry; Plum baby food and snacks; V8 juices and beverages; and Campbell's tomato juice. The Snacks segment retails Pepperidge Farm cookies, crackers, fresh bakery, and frozen products; Milano cookies and Goldfish crackers; and Snyder's of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory Pretzel Crisps, Pop Secret popcorn, Emerald nuts, and other snacking products. This segment is also involved in the retail business in Latin America.

CPB (Campbell Soup Company) trades in the Consumer Defensive sector, specifically Packaged Foods, with a market capitalization of approximately $6.07B, a trailing P/E of 11.03, a beta of -0.01 versus the broader market, a 52-week range of 19.76-36.03, average daily share volume of 8.8M, a public-listing history dating back to 1954, approximately 14K full-time employees. These structural characteristics shape how CPB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.01 indicates CPB 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 11.03 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CPB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on CPB?

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 CPB snapshot

As of May 15, 2026, spot at $19.98, ATM IV 44.85%, IV rank 93.44%, expected move 12.86%. The butterfly on CPB 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 28-day expiry.

Why this butterfly structure on CPB specifically: CPB IV at 44.85% is rich versus its 1-year range, which makes a premium-buying CPB butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 12.86% (roughly $2.57 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CPB expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPB should anchor to the underlying notional of $19.98 per share and to the trader's directional view on CPB stock.

CPB butterfly setup

The CPB 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 CPB near $19.98, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPB chain at a 28-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 CPB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$19.00	$1.60
Sell 2	Call	$20.00	$1.85
Buy 1	Call	$21.00	$0.85

CPB butterfly risk and reward

Net Premium / Debit: +$125.00
Max Profit (per contract): $216.46
Max Loss (per contract): $125.00
Breakeven(s): None on modeled curve
Risk / Reward Ratio: 1.732

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.

CPB butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CPB. 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	-99.9%	+$125.00
$4.43	-77.8%	+$125.00
$8.84	-55.7%	+$125.00
$13.26	-33.6%	+$125.00
$17.68	-11.5%	+$125.00
$22.09	+10.6%	+$125.00
$26.51	+32.7%	+$125.00
$30.93	+54.8%	+$125.00
$35.34	+76.9%	+$125.00
$39.76	+99.0%	+$125.00

When traders use butterfly on CPB

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

CPB thesis for this butterfly

The market-implied 1-standard-deviation range for CPB extends from approximately $17.41 on the downside to $22.55 on the upside. A CPB long call butterfly is a pinning play: it pays maximum at the middle strike if CPB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CPB IV rank near 93.44% 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 CPB at 44.85%. As a Consumer Defensive name, CPB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPB-specific events.

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

Frequently asked questions

What is a butterfly on CPB?: A butterfly on CPB is the butterfly strategy applied to CPB (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 CPB stock trading near $19.98, the strikes shown on this page are snapped to the nearest listed CPB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CPB 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 CPB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 44.85%), the computed maximum profit is $216.46 per contract and the computed maximum loss is $125.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CPB butterfly?: The breakeven for the CPB butterfly priced on this page is no defined breakeven on the modeled curve 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 CPB market-implied 1-standard-deviation expected move is approximately 12.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CPB?: Butterflies on CPB are pinning bets - traders use them when they expect CPB 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 CPB implied volatility affect this butterfly?: CPB ATM IV is at 44.85% with IV rank near 93.44%, 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.