How are DKS 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 DKS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 50.20%), the computed maximum profit is $769.29 per contract and the computed maximum loss is -$130.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DKS butterfly?

The breakeven for the DKS butterfly priced on this page is roughly $211.30 and $228.70 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 DKS market-implied 1-standard-deviation expected move is approximately 14.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DKS implied volatility affect this butterfly?

DKS ATM IV is at 50.20% with IV rank near 39.76%, 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.

DKS Butterfly Strategy

DKS (DICK'S Sporting Goods, Inc.), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NYSE.

DICK'S Sporting Goods, Inc., together with its subsidiaries, operates as a sporting goods retailer primarily in the eastern United States. The company provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear and accessories. It also owns and operates Sporting Goods, Golf Galaxy, Field & Stream, Public Lands, Going Going Gone!, and other specialty concept stores; and DICK'S House of Sports and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile application for video streaming, scorekeeping, scheduling, and communications. The company sells its product through e-commerce websites and mobile applications. As of January 29, 2022, it operated 730 DICK'S Sporting Goods stores. The company was formerly known as Dick'S Clothing and Sporting Goods, Inc. and changed its name to DICK'S Sporting Goods, Inc. in April 1999.

DKS (DICK'S Sporting Goods, Inc.) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $17.84B, a trailing P/E of 22.49, a beta of 1.24 versus the broader market, a 52-week range of 167.03-237.31, average daily share volume of 1.2M, a public-listing history dating back to 2002, approximately 19K full-time employees. These structural characteristics shape how DKS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.24 places DKS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DKS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on DKS?

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 DKS snapshot

As of May 15, 2026, spot at $217.72, ATM IV 50.20%, IV rank 39.76%, expected move 14.39%. The butterfly on DKS 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 DKS specifically: DKS IV at 50.20% 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 14.39% (roughly $31.33 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 DKS expiries trade a higher absolute premium for lower per-day decay. Position sizing on DKS should anchor to the underlying notional of $217.72 per share and to the trader's directional view on DKS stock.

DKS butterfly setup

The DKS 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 DKS near $217.72, the first option leg uses a $210.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DKS 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 DKS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$210.00	$16.80
Sell 2	Call	$220.00	$11.75
Buy 1	Call	$230.00	$8.00

DKS butterfly risk and reward

Net Premium / Debit: -$130.00
Max Profit (per contract): $769.29
Max Loss (per contract): -$130.00
Breakeven(s): $211.30, $228.70
Risk / Reward Ratio: 5.918

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.

DKS butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on DKS. 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%	-$130.00
$48.15	-77.9%	-$130.00
$96.29	-55.8%	-$130.00
$144.42	-33.7%	-$130.00
$192.56	-11.6%	-$130.00
$240.70	+10.6%	-$130.00
$288.84	+32.7%	-$130.00
$336.98	+54.8%	-$130.00
$385.11	+76.9%	-$130.00
$433.25	+99.0%	-$130.00

When traders use butterfly on DKS

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

DKS thesis for this butterfly

The market-implied 1-standard-deviation range for DKS extends from approximately $186.39 on the downside to $249.05 on the upside. A DKS long call butterfly is a pinning play: it pays maximum at the middle strike if DKS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DKS IV rank near 39.76% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on DKS should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, DKS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DKS-specific events.

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

Frequently asked questions

What is a butterfly on DKS?: A butterfly on DKS is the butterfly strategy applied to DKS (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 DKS stock trading near $217.72, the strikes shown on this page are snapped to the nearest listed DKS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DKS 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 DKS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 50.20%), the computed maximum profit is $769.29 per contract and the computed maximum loss is -$130.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DKS butterfly?: The breakeven for the DKS butterfly priced on this page is roughly $211.30 and $228.70 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 DKS market-implied 1-standard-deviation expected move is approximately 14.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on DKS?: Butterflies on DKS are pinning bets - traders use them when they expect DKS 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 DKS implied volatility affect this butterfly?: DKS ATM IV is at 50.20% with IV rank near 39.76%, 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.