How are CSCO 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 CSCO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.06%), the computed maximum profit is $431.93 per contract and the computed maximum loss is -$152.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CSCO butterfly?

The breakeven for the CSCO butterfly priced on this page is roughly $113.53 and $122.48 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 CSCO market-implied 1-standard-deviation expected move is approximately 10.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CSCO implied volatility affect this butterfly?

CSCO ATM IV is at 36.06% with IV rank near 60.46%, 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.

CSCO Butterfly Strategy

CSCO (Cisco Systems, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.

Cisco Systems, Inc. is a leading global technology company focused on designing, producing, and marketing Internet Protocol (IP)-based networking equipment, software, and associated products within the communications and information technology industries. The company operates extensively across major regions including the Americas, Europe, the Middle East, Africa, and the Asia Pacific, specifically covering Japan and China. Its comprehensive product lineup features switching solutions for both enterprise campuses and data centers. Cisco's enterprise routing segment is crucial for securely and reliably interconnecting public, private, wired, and mobile networks, ensuring vital connectivity across corporate campuses, data centers, and branch offices. Additionally, the company provides a range of wireless products offering seamless indoor and outdoor roaming for voice, video, and data applications. Security forms a significant pillar of its offerings, encompassing network defense, identity and access management, secure access service edge (SASE), alongside threat intelligence, detection, and response capabilities.

CSCO (Cisco Systems, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $448.42B, a trailing P/E of 37.62, a beta of 1.00 versus the broader market, a 52-week range of 65.75-130.37, average daily share volume of 23.4M, a public-listing history dating back to 1990, approximately 90K full-time employees. These structural characteristics shape how CSCO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.00 places CSCO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 37.62 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. CSCO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on CSCO?

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 CSCO snapshot

As of June 30, 2026, spot at $117.56, ATM IV 36.06%, IV rank 60.46%, expected move 10.34%. The butterfly on CSCO 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 31-day expiry.

Why this butterfly structure on CSCO specifically: CSCO IV at 36.06% 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 10.34% (roughly $12.15 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CSCO expiries trade a higher absolute premium for lower per-day decay. Position sizing on CSCO should anchor to the underlying notional of $117.56 per share and to the trader's directional view on CSCO stock.

CSCO butterfly setup

The CSCO 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 CSCO near $117.56, the first option leg uses a $112.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CSCO chain at a 31-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 CSCO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$112.00	$8.23
Sell 2	Call	$118.00	$4.75
Buy 1	Call	$123.00	$2.80

CSCO butterfly risk and reward

Net Premium / Debit: -$152.50
Max Profit (per contract): $431.93
Max Loss (per contract): -$152.50
Breakeven(s): $113.53, $122.48
Risk / Reward Ratio: 2.832

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.

CSCO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CSCO. 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%	-$152.50
$26.00	-77.9%	-$152.50
$51.99	-55.8%	-$152.50
$77.99	-33.7%	-$152.50
$103.98	-11.6%	-$152.50
$129.97	+10.6%	-$52.50
$155.96	+32.7%	-$52.50
$181.95	+54.8%	-$52.50
$207.95	+76.9%	-$52.50
$233.94	+99.0%	-$52.50

When traders use butterfly on CSCO

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

CSCO thesis for this butterfly

The market-implied 1-standard-deviation range for CSCO extends from approximately $105.41 on the downside to $129.71 on the upside. A CSCO long call butterfly is a pinning play: it pays maximum at the middle strike if CSCO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CSCO IV rank near 60.46% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CSCO should anchor more to the directional view and the expected-move geometry. As a Technology name, CSCO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CSCO-specific events.

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

Frequently asked questions

What is a butterfly on CSCO?: A butterfly on CSCO is the butterfly strategy applied to CSCO (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 CSCO stock trading near $117.56, the strikes shown on this page are snapped to the nearest listed CSCO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CSCO 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 CSCO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.06%), the computed maximum profit is $431.93 per contract and the computed maximum loss is -$152.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CSCO butterfly?: The breakeven for the CSCO butterfly priced on this page is roughly $113.53 and $122.48 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 CSCO market-implied 1-standard-deviation expected move is approximately 10.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CSCO?: Butterflies on CSCO are pinning bets - traders use them when they expect CSCO 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 CSCO implied volatility affect this butterfly?: CSCO ATM IV is at 36.06% with IV rank near 60.46%, 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.