How are CSL 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 CSL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is $1,376.46 per contract and the computed maximum loss is -$470.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CSL butterfly?

The breakeven for the CSL butterfly priced on this page is roughly $344.70 and $375.30 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 CSL market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CSL implied volatility affect this butterfly?

CSL ATM IV is at 42.90% with IV rank near 58.88%, 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.

CSL Butterfly Strategy

CSL (Carlisle Companies Incorporated), in the Industrials sector, (Construction Materials industry), listed on NYSE.

Carlisle Companies Incorporated operates as a manufacturer and supplier of building envelope products and solutions in the United States, Europe, North America, and internationally. It operates through two segments, Carlisle Construction Materials (CCM) and Carlisle Weatherproofing Technologies (CWT). The CCM segment offers single-ply roofing solutions, including ethylene propylene diene monomer, thermoplastic polyolefin, polyvinyl chloride membrane, polyiso insulation, and engineered metal roofing and wall panel systems for commercial and residential buildings. Its CWT segment provides waterproofing and moisture protection products; protective roofing underlayment; fully integrated liquid and sheet applied air/vapor barriers; sealants/primers and flashing systems; roof coatings and mastics; spray polyurethane foam and coating systems for a range of thermal protection applications and other premium polyurethane products; block-molded expanded polystyrene insulation; engineered products for HVAC applications; and products for a variety of industrial and surfacing applications. The company sells its products under the Carlisle SynTec, Versico, WeatherBond, Hunter Panels, Resitrix, and Hertalan brands. The company was founded in 1917 and is headquartered in Scottsdale, Arizona.

CSL (Carlisle Companies Incorporated) trades in the Industrials sector, specifically Construction Materials, with a market capitalization of approximately $15.72B, a trailing P/E of 21.85, a beta of 0.86 versus the broader market, a 52-week range of 293.43-435.92, average daily share volume of 392K, a public-listing history dating back to 1973, approximately 6K full-time employees. These structural characteristics shape how CSL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.86 places CSL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CSL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on CSL?

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 CSL snapshot

As of June 30, 2026, spot at $360.27, ATM IV 42.90%, IV rank 58.88%, expected move 12.30%. The butterfly on CSL 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 CSL specifically: CSL IV at 42.90% 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 12.30% (roughly $44.31 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 CSL expiries trade a higher absolute premium for lower per-day decay. Position sizing on CSL should anchor to the underlying notional of $360.27 per share and to the trader's directional view on CSL stock.

CSL butterfly setup

The CSL 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 CSL near $360.27, the first option leg uses a $340.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CSL 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 CSL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$340.00	$27.45
Sell 2	Call	$360.00	$14.70
Buy 1	Call	$380.00	$6.65

CSL butterfly risk and reward

Net Premium / Debit: -$470.00
Max Profit (per contract): $1,376.46
Max Loss (per contract): -$470.00
Breakeven(s): $344.70, $375.30
Risk / Reward Ratio: 2.929

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.

CSL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CSL. 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%	-$470.00
$79.67	-77.9%	-$470.00
$159.32	-55.8%	-$470.00
$238.98	-33.7%	-$470.00
$318.64	-11.6%	-$470.00
$398.29	+10.6%	-$470.00
$477.95	+32.7%	-$470.00
$557.61	+54.8%	-$470.00
$637.26	+76.9%	-$470.00
$716.92	+99.0%	-$470.00

When traders use butterfly on CSL

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

CSL thesis for this butterfly

The market-implied 1-standard-deviation range for CSL extends from approximately $315.96 on the downside to $404.58 on the upside. A CSL long call butterfly is a pinning play: it pays maximum at the middle strike if CSL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CSL IV rank near 58.88% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CSL should anchor more to the directional view and the expected-move geometry. As a Industrials name, CSL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CSL-specific events.

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

Frequently asked questions

What is a butterfly on CSL?: A butterfly on CSL is the butterfly strategy applied to CSL (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 CSL stock trading near $360.27, the strikes shown on this page are snapped to the nearest listed CSL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CSL 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 CSL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is $1,376.46 per contract and the computed maximum loss is -$470.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CSL butterfly?: The breakeven for the CSL butterfly priced on this page is roughly $344.70 and $375.30 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 CSL market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CSL?: Butterflies on CSL are pinning bets - traders use them when they expect CSL 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 CSL implied volatility affect this butterfly?: CSL ATM IV is at 42.90% with IV rank near 58.88%, 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.