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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 65.80%), the computed maximum profit is $447.87 per contract and the computed maximum loss is -$25.00 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 $95.03 and $104.75 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The DIOD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.86%; 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 65.80% with IV rank near 45.14%, 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 operates globally, specializing in the development, production, and distribution of standard, application-focused semiconductor components across the discrete, logic, analog, and mixed-signal sectors. The company primarily concentrates on crafting semiconductor devices featuring a minimal number of pins, which integrate either active or passive components, or a combination of both. Its extensive array of discrete semiconductor offerings encompasses field-effect transistors (MOSFETs), transient voltage suppression devices (TVS), and high-performance Schottky rectifiers. Diodes also supplies general-purpose bridge rectifiers and rectifiers, alongside specialized Schottky diodes, various Zener diodes (including tight-tolerance and low-current versions), and a comprehensive selection of recovery rectifiers, ranging from standard to ultra-fast speeds. Further products in this category include bridge rectifiers, switching diodes, compact bipolar and prebiased transistors, thyristor-based surge protectors, and transient voltage suppressors. Additionally, Diodes Incorporated delivers a suite of analog solutions.

DIOD (Diodes Incorporated) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $4.92B, a trailing P/E of 57.10, a beta of 1.89 versus the broader market, a 52-week range of 42.28-125.99, average daily share volume of 635K, 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 1.89 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 57.10 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.

DIOD snapshot

As of August 14, 2026, spot at $101.25, ATM IV 65.80%, IV rank 45.14%, expected move 18.86%. The butterfly on DIOD below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this butterfly structure on DIOD specifically: DIOD IV at 65.80% 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 18.86% (roughly $19.10 on the underlying). The 35-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 $101.25 per share and to the trader's directional view on DIOD stock.

DIOD butterfly setup

The DIOD butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DIOD at $101.25 on that close, 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 35-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	$12.25
Sell 2	Call	$100.00	$9.40
Buy 1	Call	$105.00	$6.80

DIOD butterfly risk and reward

Net Premium / Debit: -$25.00
Max Profit (per contract): $447.87
Max Loss (per contract): -$25.00
Breakeven(s): $95.03, $104.75
Risk / Reward Ratio: 17.915

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.

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%	-$25.00
$22.40	-77.9%	-$25.00
$44.78	-55.8%	-$25.00
$67.17	-33.7%	-$25.00
$89.55	-11.6%	-$25.00
$111.94	+10.6%	-$25.00
$134.32	+32.7%	-$25.00
$156.71	+54.8%	-$25.00
$179.10	+76.9%	-$25.00
$201.48	+99.0%	-$25.00

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 $82.15 on the downside to $120.35 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 45.14% 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 at $101.25 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DIOD chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 65.80%), the computed maximum profit is $447.87 per contract and the computed maximum loss is -$25.00 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 $95.03 and $104.75 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The DIOD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.86%; 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 65.80% with IV rank near 45.14%, 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.