How are DIOD 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 DIOD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 64.10%), the computed maximum profit is $419.08 per contract and the computed maximum loss is -$65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DIOD butterfly?

The breakeven for the DIOD butterfly priced on this page is roughly $95.61 and $104.35 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 DIOD market-implied 1-standard-deviation expected move is approximately 18.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DIOD implied volatility affect this butterfly?

DIOD ATM IV is at 64.10% with IV rank near 54.55%, 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.

DIOD Butterfly Strategy

DIOD (Diodes Incorporated), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Diodes Incorporated designs, manufactures, and supplies application-specific standard products in the discrete, logic, analog, and mixed-signal semiconductor markets worldwide. It focuses on low pin count semiconductor devices with one or more active or passive components. The company offers discrete semiconductor products, such as MOSFET, TVS, and performance Schottky rectifiers; GPP bridges and retifiers, and performance Schottky diodes; Zener and performance Zener diodes, including tight tolerance and low operating current type; standard, fast, super-fast, and ultra-fast recovery rectifiers; bridge rectifiers; switching diodes; small signal bipolar and prebiased transistors; thyristor surge protection devices; and transient voltage suppressors. It also provides analog products, such as power management devices comprising AC-DC and DC-DC converters, USB power switches, and low dropout and linear voltage regulators; linear devices, such as operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, including hall-effect sensors and motor drivers. The company offers mixed-signal products, such as high speed mux/demux products, digital switches, interfaces, redrivers, universal level shifters/voltage translator, clock ICs, and packet switches; standard logic products comprising low-voltage complementary metaloxidesemiconductor (CMOS) and high-speed CMOS devices; ultra-low power CMOS logic products and analog switches; multichip products and co-packaged discrete, analog, and mixed-signal silicon in miniature packages; silicon and silicon epitaxial wafers; and crystals and oscillators. It sells its products to the consumer electronics, computing, communications, industrial, and automotive markets through direct sales, marketing personnel, independent sales representatives, and distributors.

DIOD (Diodes Incorporated) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $4.68B, a trailing P/E of 54.73, a beta of 1.94 versus the broader market, a 52-week range of 42.28-117.8, average daily share volume of 564K, a public-listing history dating back to 1966, approximately 8K full-time employees. These structural characteristics shape how DIOD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.94 indicates DIOD 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 54.73 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.

What is a butterfly on DIOD?

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 DIOD snapshot

As of May 15, 2026, spot at $100.34, ATM IV 64.10%, IV rank 54.55%, expected move 18.38%. The butterfly on DIOD 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 34-day expiry.

Why this butterfly structure on DIOD specifically: DIOD IV at 64.10% 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 18.38% (roughly $18.44 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DIOD expiries trade a higher absolute premium for lower per-day decay. Position sizing on DIOD should anchor to the underlying notional of $100.34 per share and to the trader's directional view on DIOD stock.

DIOD butterfly setup

The DIOD 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 DIOD near $100.34, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DIOD chain at a 34-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 DIOD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$95.00	$11.35
Sell 2	Call	$100.00	$8.50
Buy 1	Call	$105.00	$6.30

DIOD butterfly risk and reward

Net Premium / Debit: -$65.00
Max Profit (per contract): $419.08
Max Loss (per contract): -$65.00
Breakeven(s): $95.61, $104.35
Risk / Reward Ratio: 6.447

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.

DIOD butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on DIOD. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$65.00
$22.19	-77.9%	-$65.00
$44.38	-55.8%	-$65.00
$66.56	-33.7%	-$65.00
$88.75	-11.6%	-$65.00
$110.93	+10.6%	-$65.00
$133.12	+32.7%	-$65.00
$155.30	+54.8%	-$65.00
$177.49	+76.9%	-$65.00
$199.67	+99.0%	-$65.00

When traders use butterfly on DIOD

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

DIOD thesis for this butterfly

The market-implied 1-standard-deviation range for DIOD extends from approximately $81.90 on the downside to $118.78 on the upside. A DIOD long call butterfly is a pinning play: it pays maximum at the middle strike if DIOD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DIOD IV rank near 54.55% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on DIOD should anchor more to the directional view and the expected-move geometry. As a Technology name, DIOD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DIOD-specific events.

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

Frequently asked questions

What is a butterfly on DIOD?: A butterfly on DIOD is the butterfly strategy applied to DIOD (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 DIOD stock trading near $100.34, the strikes shown on this page are snapped to the nearest listed DIOD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DIOD 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 DIOD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 64.10%), the computed maximum profit is $419.08 per contract and the computed maximum loss is -$65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DIOD butterfly?: The breakeven for the DIOD butterfly priced on this page is roughly $95.61 and $104.35 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 DIOD market-implied 1-standard-deviation expected move is approximately 18.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on DIOD?: Butterflies on DIOD are pinning bets - traders use them when they expect DIOD 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 DIOD implied volatility affect this butterfly?: DIOD ATM IV is at 64.10% with IV rank near 54.55%, 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.