How are CSTM 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 CSTM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 51.90%), the computed maximum profit is $115.78 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CSTM butterfly?

The breakeven for the CSTM butterfly priced on this page is roughly $30.70 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 CSTM market-implied 1-standard-deviation expected move is approximately 14.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CSTM implied volatility affect this butterfly?

CSTM ATM IV is at 51.90% with IV rank near 32.08%, 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.

CSTM Butterfly Strategy

CSTM (Constellium SE), in the Basic Materials sector, (Aluminum industry), listed on NYSE.

Constellium SE, along with its various subsidiaries, specializes in the development, production, and distribution of high-performance rolled and extruded aluminum solutions. These solutions primarily serve the packaging, aerospace, and automotive industries. Its operations are structured into three distinct business segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products division manufactures rolled aluminum materials. This includes stock for beverage and food cans and closures, as well as foil for flexible packaging applications. Additionally, this segment provides crucial components for the automotive sector, such as body sheets and heat exchangers, alongside specialized reflective sheets.

CSTM (Constellium SE) trades in the Basic Materials sector, specifically Aluminum, with a market capitalization of approximately $4.33B, a trailing P/E of 10.02, a beta of 1.55 versus the broader market, a 52-week range of 13.04-36.99, average daily share volume of 2.2M, a public-listing history dating back to 2013, approximately 12K full-time employees. These structural characteristics shape how CSTM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.55 indicates CSTM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 10.02 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 CSTM?

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 CSTM snapshot

As of June 30, 2026, spot at $31.66, ATM IV 51.90%, IV rank 32.08%, expected move 14.88%. The butterfly on CSTM 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 CSTM specifically: CSTM IV at 51.90% 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 14.88% (roughly $4.71 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 CSTM expiries trade a higher absolute premium for lower per-day decay. Position sizing on CSTM should anchor to the underlying notional of $31.66 per share and to the trader's directional view on CSTM stock.

CSTM butterfly setup

The CSTM 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 CSTM near $31.66, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CSTM 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 CSTM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$30.00	$2.48
Sell 2	Call	$32.00	$1.33
Buy 1	Call	$33.00	$0.88

CSTM butterfly risk and reward

Net Premium / Debit: -$70.00
Max Profit (per contract): $115.78
Max Loss (per contract): -$70.00
Breakeven(s): $30.70
Risk / Reward Ratio: 1.654

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.

CSTM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CSTM. 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%	-$70.00
$7.01	-77.9%	-$70.00
$14.01	-55.8%	-$70.00
$21.01	-33.6%	-$70.00
$28.01	-11.5%	-$70.00
$35.01	+10.6%	+$30.00
$42.00	+32.7%	+$30.00
$49.00	+54.8%	+$30.00
$56.00	+76.9%	+$30.00
$63.00	+99.0%	+$30.00

When traders use butterfly on CSTM

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

CSTM thesis for this butterfly

The market-implied 1-standard-deviation range for CSTM extends from approximately $26.95 on the downside to $36.37 on the upside. A CSTM long call butterfly is a pinning play: it pays maximum at the middle strike if CSTM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CSTM IV rank near 32.08% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CSTM should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, CSTM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CSTM-specific events.

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

Frequently asked questions

What is a butterfly on CSTM?: A butterfly on CSTM is the butterfly strategy applied to CSTM (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 CSTM stock trading near $31.66, the strikes shown on this page are snapped to the nearest listed CSTM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CSTM 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 CSTM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 51.90%), the computed maximum profit is $115.78 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CSTM butterfly?: The breakeven for the CSTM butterfly priced on this page is roughly $30.70 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 CSTM market-implied 1-standard-deviation expected move is approximately 14.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CSTM?: Butterflies on CSTM are pinning bets - traders use them when they expect CSTM 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 CSTM implied volatility affect this butterfly?: CSTM ATM IV is at 51.90% with IV rank near 32.08%, 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.