How are DISK 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 DISK butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 71.10%), the computed maximum profit is $177.26 per contract and the computed maximum loss is -$7.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DISK butterfly?

The breakeven for the DISK butterfly priced on this page is roughly $35.97 and $39.98 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 DISK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DISK implied volatility affect this butterfly?

Current DISK ATM IV is 71.10%; IV rank context is unavailable in the current snapshot.

DISK Butterfly Strategy

DISK (TEMA MEMORY ETF), in the Communication Services sector, (Telecommunications Services industry), listed on AMEX.

DISH Network Corporation is a connectivity company that has been a disruptive force in driving innovation and value for consumers since 1980. Through its subsidiaries, the company provides television entertainment and award-winning technology to millions of customers with its satellite DISH TV and streaming SLING TV services. In 2020, the company became a nationwide U.S. wireless carrier through the acquisition of Boost Mobile and is building the nation's first cloud-native, OpenRAN-based 5G broadband network.

DISK (TEMA MEMORY ETF) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $8.7M, a beta of 0.00 versus the broader market, a 52-week range of 28.35-50.46, average daily share volume of 447K, a public-listing history dating back to 2026, approximately 14K full-time employees. These structural characteristics shape how DISK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates DISK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a butterfly on DISK?

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.

DISK snapshot

As of August 14, 2026, spot at $38.34, ATM IV 71.10%, expected move 20.38%. The butterfly on DISK 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 DISK specifically: IV rank is unavailable in the current snapshot, so regime-based timing for DISK is inferred from ATM IV at 71.10% alone, with a market-implied 1-standard-deviation move of approximately 20.38% (roughly $7.82 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 DISK expiries trade a higher absolute premium for lower per-day decay. Position sizing on DISK should anchor to the underlying notional of $38.34 per share and to the trader's directional view on DISK stock.

DISK butterfly setup

The DISK 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 DISK at $38.34 on that close, the first option leg uses a $36.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DISK 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 DISK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$36.00	$4.65
Sell 2	Call	$38.00	$3.70
Buy 1	Call	$40.00	$2.83

DISK butterfly risk and reward

Net Premium / Debit: -$7.50
Max Profit (per contract): $177.26
Max Loss (per contract): -$7.50
Breakeven(s): $35.97, $39.98
Risk / Reward Ratio: 23.635

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.

DISK butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on DISK. 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%	-$7.50
$8.49	-77.9%	-$7.50
$16.96	-55.8%	-$7.50
$25.44	-33.7%	-$7.50
$33.91	-11.5%	-$7.50
$42.39	+10.6%	-$7.50
$50.87	+32.7%	-$7.50
$59.34	+54.8%	-$7.50
$67.82	+76.9%	-$7.50
$76.29	+99.0%	-$7.50

When traders use butterfly on DISK

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

DISK thesis for this butterfly

The market-implied 1-standard-deviation range for DISK extends from approximately $30.52 on the downside to $46.16 on the upside. A DISK long call butterfly is a pinning play: it pays maximum at the middle strike if DISK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Communication Services name, DISK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DISK-specific events.

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

Frequently asked questions

What is a butterfly on DISK?: A butterfly on DISK is the butterfly strategy applied to DISK (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 DISK stock at $38.34 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DISK chain strike and the premiums come straight from that session's bid/ask midpoint.
How are DISK 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 DISK butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 71.10%), the computed maximum profit is $177.26 per contract and the computed maximum loss is -$7.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DISK butterfly?: The breakeven for the DISK butterfly priced on this page is roughly $35.97 and $39.98 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 DISK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on DISK?: Butterflies on DISK are pinning bets - traders use them when they expect DISK 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 DISK implied volatility affect this butterfly?: Current DISK ATM IV is 71.10%; IV rank context is unavailable in the current snapshot.