How are DRI 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 DRI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.80%), the computed maximum profit is $898.90 per contract and the computed maximum loss is -$517.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DRI butterfly?

The breakeven for the DRI butterfly priced on this page is roughly $184.33 and $204.83 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 DRI market-implied 1-standard-deviation expected move is approximately 8.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DRI implied volatility affect this butterfly?

DRI ATM IV is at 30.80% with IV rank near 31.13%, 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.

DRI Butterfly Strategy

DRI (Darden Restaurants, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NYSE.

Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 29, 2022, it owned and operated 1,867 restaurants, which included 884 under the Olive Garden brand, 546 under the LongHorn Steakhouse brand name, 172 under the Cheddar's Scratch Kitchen brand, 85 under the Yard House brand name, 62 under The Capital Grille brand, 45 under the Seasons 52 brand name, 42 under the Bahama Breeze brand, 28 under the Eddie V's Prime Seafood brand name, and 3 under the Capital Burger brand; and franchised 60 restaurants comprising 35 under the Olive Garden brand, 18 under the LongHorn Steakhouse brand name, 4 under the Cheddar's Scratch Kitchen brand, 2 under The Capital Grille brand name, and 1 under the Bahama Breeze brand.Darden Restaurants, Inc. was founded in 1968 and is based in Orlando, Florida.

DRI (Darden Restaurants, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $22.08B, a trailing P/E of 20.21, a beta of 0.59 versus the broader market, a 52-week range of 169-228.27, average daily share volume of 1.3M, a public-listing history dating back to 1995, approximately 191K full-time employees. These structural characteristics shape how DRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.59 indicates DRI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. DRI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on DRI?

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 DRI snapshot

As of May 15, 2026, spot at $196.82, ATM IV 30.80%, IV rank 31.13%, expected move 8.83%. The butterfly on DRI 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 DRI specifically: DRI IV at 30.80% 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 8.83% (roughly $17.38 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 DRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on DRI should anchor to the underlying notional of $196.82 per share and to the trader's directional view on DRI stock.

DRI butterfly setup

The DRI 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 DRI near $196.82, the first option leg uses a $185.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DRI 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 DRI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$185.00	$15.15
Sell 2	Call	$195.00	$8.65
Buy 1	Call	$210.00	$2.33

DRI butterfly risk and reward

Net Premium / Debit: -$17.50
Max Profit (per contract): $898.90
Max Loss (per contract): -$517.50
Breakeven(s): $184.33, $204.83
Risk / Reward Ratio: 1.737

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.

DRI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on DRI. 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%	-$17.50
$43.53	-77.9%	-$17.50
$87.04	-55.8%	-$17.50
$130.56	-33.7%	-$17.50
$174.08	-11.6%	-$17.50
$217.59	+10.6%	-$517.50
$261.11	+32.7%	-$517.50
$304.63	+54.8%	-$517.50
$348.15	+76.9%	-$517.50
$391.66	+99.0%	-$517.50

When traders use butterfly on DRI

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

DRI thesis for this butterfly

The market-implied 1-standard-deviation range for DRI extends from approximately $179.44 on the downside to $214.20 on the upside. A DRI long call butterfly is a pinning play: it pays maximum at the middle strike if DRI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DRI IV rank near 31.13% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on DRI should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, DRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DRI-specific events.

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

Frequently asked questions

What is a butterfly on DRI?: A butterfly on DRI is the butterfly strategy applied to DRI (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 DRI stock trading near $196.82, the strikes shown on this page are snapped to the nearest listed DRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DRI 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 DRI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.80%), the computed maximum profit is $898.90 per contract and the computed maximum loss is -$517.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DRI butterfly?: The breakeven for the DRI butterfly priced on this page is roughly $184.33 and $204.83 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 DRI market-implied 1-standard-deviation expected move is approximately 8.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on DRI?: Butterflies on DRI are pinning bets - traders use them when they expect DRI 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 DRI implied volatility affect this butterfly?: DRI ATM IV is at 30.80% with IV rank near 31.13%, 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.