How are ECHO 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 ECHO butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 46.63%), the computed maximum profit is $383.42 per contract and the computed maximum loss is -$100.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ECHO butterfly?

The breakeven for the ECHO butterfly priced on this page is roughly $88.00 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 ECHO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ECHO implied volatility affect this butterfly?

ECHO ATM IV is at 46.63% with IV rank near 4.91%, 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.

ECHO Butterfly Strategy

ECHO (EchoStar Corporation), in the Communication Services sector, (Telecommunications Services industry), listed on NASDAQ.

EchoStar Corp. engages in the design, development, and distribution of digital set-top boxes and products for direct-to-home satellite service providers. It operates through the following business segments: Pay-TV, Retail Wireless, and Broadband and Satellite Services. The Pay-TV segment business strategy is to be the best provider of video services in the United States by providing products with the best technology, outstanding customer service, and great value. The Retail Wireless segment offers Retail Wireless services as well as a competitive portfolio of wireless devices. The Broadband and Satellite Services segment business strategy is to maintain and improve leadership position and competitive advantage through development of technologies and services marketed to selected sectors within the consumer, enterprise and government markets globally. The company was founded by Charlie William Ergen, Candy Ergen, and James DeFranco in 1980 and is headquartered in Englewood, CO.

ECHO (EchoStar Corporation) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $14.66B, a beta of 0.95 versus the broader market, a 52-week range of 26.52-147.25, average daily share volume of 7.7M, a public-listing history dating back to 2008, approximately 12K full-time employees. These structural characteristics shape how ECHO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.95 places ECHO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on ECHO?

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.

ECHO snapshot

As of August 14, 2026, spot at $91.70, ATM IV 46.63%, IV rank 4.91%, expected move 13.37%. The butterfly on ECHO 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 ECHO specifically: ECHO IV at 46.63% is on the cheap side of its 1-year range, which favors premium-buying structures like a ECHO butterfly, with a market-implied 1-standard-deviation move of approximately 13.37% (roughly $12.26 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 ECHO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ECHO should anchor to the underlying notional of $91.70 per share and to the trader's directional view on ECHO stock.

ECHO butterfly setup

The ECHO 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 ECHO at $91.70 on that close, the first option leg uses a $87.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ECHO 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 ECHO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$87.00	$7.30
Sell 2	Call	$92.00	$4.75
Buy 1	Call	$96.00	$3.20

ECHO butterfly risk and reward

Net Premium / Debit: -$100.00
Max Profit (per contract): $383.42
Max Loss (per contract): -$100.00
Breakeven(s): $88.00
Risk / Reward Ratio: 3.834

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.

ECHO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ECHO. 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%	-$100.00
$20.28	-77.9%	-$100.00
$40.56	-55.8%	-$100.00
$60.83	-33.7%	-$100.00
$81.11	-11.6%	-$100.00
$101.38	+10.6%	$0.00
$121.66	+32.7%	$0.00
$141.93	+54.8%	$0.00
$162.20	+76.9%	$0.00
$182.48	+99.0%	$0.00

When traders use butterfly on ECHO

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

ECHO thesis for this butterfly

The market-implied 1-standard-deviation range for ECHO extends from approximately $79.44 on the downside to $103.96 on the upside. A ECHO long call butterfly is a pinning play: it pays maximum at the middle strike if ECHO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ECHO IV rank near 4.91% 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 ECHO at 46.63%. As a Communication Services name, ECHO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ECHO-specific events.

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

Frequently asked questions

What is a butterfly on ECHO?: A butterfly on ECHO is the butterfly strategy applied to ECHO (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 ECHO stock at $91.70 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ECHO chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ECHO 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 ECHO butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 46.63%), the computed maximum profit is $383.42 per contract and the computed maximum loss is -$100.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ECHO butterfly?: The breakeven for the ECHO butterfly priced on this page is roughly $88.00 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 ECHO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ECHO?: Butterflies on ECHO are pinning bets - traders use them when they expect ECHO 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 ECHO implied volatility affect this butterfly?: ECHO ATM IV is at 46.63% with IV rank near 4.91%, 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.