How are DOCU 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 DOCU butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 67.26%), the computed maximum profit is $254.44 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DOCU butterfly?

The breakeven for the DOCU butterfly priced on this page is roughly $59.32 and $64.65 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 DOCU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DOCU implied volatility affect this butterfly?

DOCU ATM IV is at 67.26% with IV rank near 71.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

DOCU Butterfly Strategy

DOCU (DocuSign, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

DocuSign, Inc. is a global provider of electronic signature software, operating both within the United States and internationally. The company's core offering is an e-signature solution that empowers businesses to digitally prepare, execute, finalize, and manage various agreements. Beyond its foundational e-signature service, DocuSign offers an extensive suite of tools for digital agreement management. This includes Contract Lifecycle Management (CLM) to streamline agreement workflows, and Insights, which leverages artificial intelligence to analyze agreements based on legal concepts and clauses. For Salesforce users, there's Gen, enabling sales teams to quickly generate agreements, and Negotiate, providing functionalities like approvals, document comparisons, and version control. Customers can also utilize Analyzer to comprehend documents before signing, and the advanced CLM+ for AI-driven contract lifecycle management.

DOCU (DocuSign, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $11.09B, a trailing P/E of 36.03, a beta of 0.90 versus the broader market, a 52-week range of 40.16-86.65, average daily share volume of 3.7M, a public-listing history dating back to 2018, approximately 7K full-time employees. These structural characteristics shape how DOCU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.90 places DOCU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.03 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 DOCU?

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.

DOCU snapshot

As of August 14, 2026, spot at $61.58, ATM IV 67.26%, IV rank 71.00%, expected move 19.28%. The butterfly on DOCU 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 28-day expiry.

Why this butterfly structure on DOCU specifically: DOCU IV at 67.26% is rich versus its 1-year range, which makes a premium-buying DOCU butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 19.28% (roughly $11.87 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DOCU expiries trade a higher absolute premium for lower per-day decay. Position sizing on DOCU should anchor to the underlying notional of $61.58 per share and to the trader's directional view on DOCU stock.

DOCU butterfly setup

The DOCU 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 DOCU at $61.58 on that close, the first option leg uses a $59.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DOCU chain at a 28-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 DOCU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$59.00	$6.15
Sell 2	Call	$62.00	$4.55
Buy 1	Call	$65.00	$3.30

DOCU butterfly risk and reward

Net Premium / Debit: -$35.00
Max Profit (per contract): $254.44
Max Loss (per contract): -$35.00
Breakeven(s): $59.32, $64.65
Risk / Reward Ratio: 7.270

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.

DOCU butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on DOCU. 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%	-$35.00
$13.62	-77.9%	-$35.00
$27.24	-55.8%	-$35.00
$40.85	-33.7%	-$35.00
$54.47	-11.5%	-$35.00
$68.08	+10.6%	-$35.00
$81.70	+32.7%	-$35.00
$95.31	+54.8%	-$35.00
$108.93	+76.9%	-$35.00
$122.54	+99.0%	-$35.00

When traders use butterfly on DOCU

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

DOCU thesis for this butterfly

The market-implied 1-standard-deviation range for DOCU extends from approximately $49.71 on the downside to $73.45 on the upside. A DOCU long call butterfly is a pinning play: it pays maximum at the middle strike if DOCU settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DOCU IV rank near 71.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on DOCU at 67.26%. As a Technology name, DOCU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DOCU-specific events.

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

Frequently asked questions

What is a butterfly on DOCU?: A butterfly on DOCU is the butterfly strategy applied to DOCU (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 DOCU stock at $61.58 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DOCU chain strike and the premiums come straight from that session's bid/ask midpoint.
How are DOCU 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 DOCU butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 67.26%), the computed maximum profit is $254.44 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DOCU butterfly?: The breakeven for the DOCU butterfly priced on this page is roughly $59.32 and $64.65 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 DOCU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on DOCU?: Butterflies on DOCU are pinning bets - traders use them when they expect DOCU 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 DOCU implied volatility affect this butterfly?: DOCU ATM IV is at 67.26% with IV rank near 71.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.