How are CPRI 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 CPRI butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 43.80%), the computed maximum profit is $89.78 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CPRI butterfly?

The breakeven for the CPRI butterfly priced on this page is roughly $22.00 at expiration, derived from the November 13, 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 CPRI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CPRI implied volatility affect this butterfly?

CPRI ATM IV is at 43.80% with IV rank near 23.78%, 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.

CPRI Butterfly Strategy

CPRI (Capri Holdings Limited), in the Consumer Cyclical sector, (Apparel - Footwear & Accessories industry), listed on NYSE.

Capri Holdings Limited engages in the design, marketing, distribution, and retail of branded women’s and men’s apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia, and the Oceania. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, eyewear, watches, jewelry, fragrances, home furnishings, handbags, small leather goods, scarves and belts, and shoes and related accessories through a distribution network, including boutiques, and department and specialty stores, as well as through e-commerce sites. It also undertakes licensing agreements relating to manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.

CPRI (Capri Holdings Limited) trades in the Consumer Cyclical sector, specifically Apparel - Footwear & Accessories, with a market capitalization of approximately $2.22B, a trailing P/E of 11.38, a beta of 1.29 versus the broader market, a 52-week range of 12.4-28.27, average daily share volume of 4.3M, a public-listing history dating back to 2011, approximately 15K full-time employees. These structural characteristics shape how CPRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.29 places CPRI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.38 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 CPRI?

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.

CPRI snapshot

As of November 13, 2026, spot at $21.42, ATM IV 43.80%, IV rank 23.78%, expected move 12.56%. The butterfly on CPRI below is built from the November 13, 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 CPRI specifically: CPRI IV at 43.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a CPRI butterfly, with a market-implied 1-standard-deviation move of approximately 12.56% (roughly $2.69 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 CPRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPRI should anchor to the underlying notional of $21.42 per share and to the trader's directional view on CPRI stock.

CPRI butterfly setup

The CPRI butterfly below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CPRI at $21.42 on that close, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPRI 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 CPRI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$20.00	$2.00
Sell 2	Call	$21.00	$1.35
Buy 1	Call	$22.50	$0.70

CPRI butterfly risk and reward

Net Premium / Debit: $0.00
Max Profit (per contract): $89.78
Max Loss (per contract): -$50.00
Breakeven(s): $22.00
Risk / Reward Ratio: 1.796

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.

CPRI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CPRI. 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%	$0.00
$4.74	-77.8%	$0.00
$9.48	-55.7%	$0.00
$14.21	-33.6%	$0.00
$18.95	-11.5%	$0.00
$23.68	+10.6%	-$50.00
$28.42	+32.7%	-$50.00
$33.15	+54.8%	-$50.00
$37.89	+76.9%	-$50.00
$42.62	+99.0%	-$50.00

When traders use butterfly on CPRI

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

CPRI thesis for this butterfly

The market-implied 1-standard-deviation range for CPRI extends from approximately $18.73 on the downside to $24.11 on the upside. A CPRI long call butterfly is a pinning play: it pays maximum at the middle strike if CPRI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CPRI IV rank near 23.78% 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 CPRI at 43.80%. As a Consumer Cyclical name, CPRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPRI-specific events.

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

Frequently asked questions

What is a butterfly on CPRI?: A butterfly on CPRI is the butterfly strategy applied to CPRI (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 CPRI stock at $21.42 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed CPRI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CPRI 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 CPRI butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 43.80%), the computed maximum profit is $89.78 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CPRI butterfly?: The breakeven for the CPRI butterfly priced on this page is roughly $22.00 at expiration, derived from the November 13, 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 CPRI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CPRI?: Butterflies on CPRI are pinning bets - traders use them when they expect CPRI 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 CPRI implied volatility affect this butterfly?: CPRI ATM IV is at 43.80% with IV rank near 23.78%, 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.