How are DXC 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 DXC butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.40%), the computed maximum profit is $60.00 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DXC butterfly?

The breakeven for the DXC butterfly priced on this page is roughly $10.40 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 DXC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DXC implied volatility affect this butterfly?

DXC ATM IV is at 59.40% with IV rank near 7.06%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

DXC Butterfly Strategy

DXC (DXC Technology Company), in the Technology sector, (Information Technology Services industry), listed on NYSE.

DXC Technology Company, along with its affiliated entities, delivers a comprehensive suite of IT solutions and services across various global regions, with a significant presence in North America, Europe, Asia, and Australia. The company structures its operations into two primary divisions: Global Business Services (GBS) and Global Infrastructure Services (GIS). Within its GBS segment, DXC offers a range of analytics offerings, supported by an extensive partner ecosystem, empowering clients to quickly gain insights, automate operational processes, and accelerate their digital transformation initiatives. This segment also provides expertise in software engineering, strategic consulting, and data analytics to help businesses manage vital operations, modernize practices, and innovate their business models. Furthermore, GBS leverages diverse technologies and approaches to expedite the development, updating, deployment, and upkeep of secure applications, thereby enabling quicker innovation, minimized risk, faster market entry, and lower overall cost. Additionally, this division provides business process services, including the unification and enhancement of both client-facing and internal operations, along with agile process automation.

DXC (DXC Technology Company) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $1.73B, a trailing P/E of 14.03, a beta of 0.80 versus the broader market, a 52-week range of 7.9-15.68, average daily share volume of 5.0M, a public-listing history dating back to 1981, approximately 115K full-time employees. These structural characteristics shape how DXC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.80 places DXC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DXC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on DXC?

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.

DXC snapshot

As of August 14, 2026, spot at $10.83, ATM IV 59.40%, IV rank 7.06%, expected move 17.03%. The butterfly on DXC 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 DXC specifically: DXC IV at 59.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a DXC butterfly, with a market-implied 1-standard-deviation move of approximately 17.03% (roughly $1.84 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 DXC expiries trade a higher absolute premium for lower per-day decay. Position sizing on DXC should anchor to the underlying notional of $10.83 per share and to the trader's directional view on DXC stock.

DXC butterfly setup

The DXC 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 DXC at $10.83 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DXC 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 DXC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$10.00	$1.35
Sell 2	Call	$11.00	$0.95
Buy 1	Call	$11.00	$0.95

DXC butterfly risk and reward

Net Premium / Debit: -$40.00
Max Profit (per contract): $60.00
Max Loss (per contract): -$40.00
Breakeven(s): $10.40
Risk / Reward Ratio: 1.500

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.

DXC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on DXC. 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	-99.9%	-$40.00
$2.40	-77.8%	-$40.00
$4.80	-55.7%	-$40.00
$7.19	-33.6%	-$40.00
$9.58	-11.5%	-$40.00
$11.98	+10.6%	+$60.00
$14.37	+32.7%	+$60.00
$16.76	+54.8%	+$60.00
$19.16	+76.9%	+$60.00
$21.55	+99.0%	+$60.00

When traders use butterfly on DXC

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

DXC thesis for this butterfly

The market-implied 1-standard-deviation range for DXC extends from approximately $8.99 on the downside to $12.67 on the upside. A DXC long call butterfly is a pinning play: it pays maximum at the middle strike if DXC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DXC IV rank near 7.06% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on DXC at 59.40%. As a Technology name, DXC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DXC-specific events.

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

Frequently asked questions

What is a butterfly on DXC?: A butterfly on DXC is the butterfly strategy applied to DXC (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 DXC stock at $10.83 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DXC chain strike and the premiums come straight from that session's bid/ask midpoint.
How are DXC 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 DXC butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.40%), the computed maximum profit is $60.00 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DXC butterfly?: The breakeven for the DXC butterfly priced on this page is roughly $10.40 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 DXC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on DXC?: Butterflies on DXC are pinning bets - traders use them when they expect DXC 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 DXC implied volatility affect this butterfly?: DXC ATM IV is at 59.40% with IV rank near 7.06%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.