How are CRC 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 CRC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.30%), the computed maximum profit is $176.97 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CRC butterfly?

The breakeven for the CRC butterfly priced on this page is roughly $50.53 and $54.48 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 CRC market-implied 1-standard-deviation expected move is approximately 12.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CRC implied volatility affect this butterfly?

CRC ATM IV is at 42.30% with IV rank near 46.68%, 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.

CRC Butterfly Strategy

CRC (California Resources Corp), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.

California Resources Corporation operates as an independent energy and carbon management company in the United States. The company operates in two segments, Oil and Natural Gas, and Carbon Management. It explores, develops, and produces crude oil, oil condensate, natural gas liquids and natural gas to california refineries, marketers, and other purchasers. The company also provides Carbon TerraVault which builds, installs, operates, and maintains CO2 capture equipment, transportation assets, and storage facilities. In addition, it owns and operates power generation facilities, as well as smaller gas-fired power plants used to generate power for oil and natural gas operations. The company was incorporated in 2014 and is based in Long Beach, California.

CRC (California Resources Corp) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $4.77B, a beta of 0.90 versus the broader market, a 52-week range of 43.245-71.98, average daily share volume of 860K, a public-listing history dating back to 2020, approximately 3K full-time employees. These structural characteristics shape how CRC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.90 places CRC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CRC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on CRC?

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 CRC snapshot

As of June 30, 2026, spot at $53.09, ATM IV 42.30%, IV rank 46.68%, expected move 12.13%. The butterfly on CRC 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 CRC specifically: CRC IV at 42.30% 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 12.13% (roughly $6.44 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 CRC expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRC should anchor to the underlying notional of $53.09 per share and to the trader's directional view on CRC stock.

CRC butterfly setup

The CRC 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 CRC near $53.09, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRC 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 CRC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$50.00	$3.80
Sell 2	Call	$52.50	$2.23
Buy 1	Call	$55.00	$1.18

CRC butterfly risk and reward

Net Premium / Debit: -$52.50
Max Profit (per contract): $176.97
Max Loss (per contract): -$52.50
Breakeven(s): $50.53, $54.48
Risk / Reward Ratio: 3.371

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.

CRC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CRC. 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%	-$52.50
$11.75	-77.9%	-$52.50
$23.48	-55.8%	-$52.50
$35.22	-33.7%	-$52.50
$46.96	-11.5%	-$52.50
$58.70	+10.6%	-$52.50
$70.43	+32.7%	-$52.50
$82.17	+54.8%	-$52.50
$93.91	+76.9%	-$52.50
$105.65	+99.0%	-$52.50

When traders use butterfly on CRC

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

CRC thesis for this butterfly

The market-implied 1-standard-deviation range for CRC extends from approximately $46.65 on the downside to $59.53 on the upside. A CRC long call butterfly is a pinning play: it pays maximum at the middle strike if CRC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CRC IV rank near 46.68% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CRC should anchor more to the directional view and the expected-move geometry. As a Energy name, CRC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRC-specific events.

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

Frequently asked questions

What is a butterfly on CRC?: A butterfly on CRC is the butterfly strategy applied to CRC (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 CRC stock trading near $53.09, the strikes shown on this page are snapped to the nearest listed CRC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CRC 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 CRC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.30%), the computed maximum profit is $176.97 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CRC butterfly?: The breakeven for the CRC butterfly priced on this page is roughly $50.53 and $54.48 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 CRC market-implied 1-standard-deviation expected move is approximately 12.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CRC?: Butterflies on CRC are pinning bets - traders use them when they expect CRC 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 CRC implied volatility affect this butterfly?: CRC ATM IV is at 42.30% with IV rank near 46.68%, 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.