How are ECPG 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 ECPG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.00%), the computed maximum profit is $529.49 per contract and the computed maximum loss is -$172.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ECPG butterfly?

The breakeven for the ECPG butterfly priced on this page is roughly $99.23 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 ECPG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ECPG implied volatility affect this butterfly?

ECPG ATM IV is at 37.00% with IV rank near 4.77%, 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.

ECPG Butterfly Strategy

ECPG (Encore Capital Group, Inc.), in the Financial Services sector, (Financial - Mortgages industry), listed on NASDAQ.

Encore Capital Group, Inc. operates as a specialized financial institution, offering global solutions for debt resolution and associated support services to individual consumers holding diverse financial assets. The company acquires portfolios of consumer debts that are in default, often at substantial discounts from their original value. It then oversees these accounts by engaging with individuals to assist them in fulfilling their repayment responsibilities and working towards their financial recovery. Additionally, Encore Capital Group provides a range of services including initial collection efforts, business process outsourcing, performance-based collection, loan servicing, and various other portfolio administration services to lenders grappling with non-performing loans. The enterprise was established in 1999 and its main offices are situated in San Diego, California.

ECPG (Encore Capital Group, Inc.) trades in the Financial Services sector, specifically Financial - Mortgages, with a market capitalization of approximately $2.09B, a trailing P/E of 6.97, a beta of 1.28 versus the broader market, a 52-week range of 39.95-101.8, average daily share volume of 349K, a public-listing history dating back to 1999, approximately 7K full-time employees. These structural characteristics shape how ECPG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.28 places ECPG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 6.97 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a butterfly on ECPG?

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.

ECPG snapshot

As of August 14, 2026, spot at $102.89, ATM IV 37.00%, IV rank 4.77%, expected move 10.61%. The butterfly on ECPG 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 ECPG specifically: ECPG IV at 37.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a ECPG butterfly, with a market-implied 1-standard-deviation move of approximately 10.61% (roughly $10.91 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 ECPG expiries trade a higher absolute premium for lower per-day decay. Position sizing on ECPG should anchor to the underlying notional of $102.89 per share and to the trader's directional view on ECPG stock.

ECPG butterfly setup

The ECPG 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 ECPG at $102.89 on that close, the first option leg uses a $97.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ECPG 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 ECPG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$97.50	$7.90
Sell 2	Call	$105.00	$3.85
Buy 1	Call	$110.00	$1.53

ECPG butterfly risk and reward

Net Premium / Debit: -$172.50
Max Profit (per contract): $529.49
Max Loss (per contract): -$172.50
Breakeven(s): $99.23
Risk / Reward Ratio: 3.070

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.

ECPG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ECPG. 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%	-$172.50
$22.76	-77.9%	-$172.50
$45.51	-55.8%	-$172.50
$68.26	-33.7%	-$172.50
$91.00	-11.6%	-$172.50
$113.75	+10.6%	+$77.50
$136.50	+32.7%	+$77.50
$159.25	+54.8%	+$77.50
$182.00	+76.9%	+$77.50
$204.75	+99.0%	+$77.50

When traders use butterfly on ECPG

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

ECPG thesis for this butterfly

The market-implied 1-standard-deviation range for ECPG extends from approximately $91.98 on the downside to $113.80 on the upside. A ECPG long call butterfly is a pinning play: it pays maximum at the middle strike if ECPG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ECPG IV rank near 4.77% 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 ECPG at 37.00%. As a Financial Services name, ECPG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ECPG-specific events.

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

Frequently asked questions

What is a butterfly on ECPG?: A butterfly on ECPG is the butterfly strategy applied to ECPG (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 ECPG stock at $102.89 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ECPG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ECPG 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 ECPG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.00%), the computed maximum profit is $529.49 per contract and the computed maximum loss is -$172.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ECPG butterfly?: The breakeven for the ECPG butterfly priced on this page is roughly $99.23 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 ECPG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ECPG?: Butterflies on ECPG are pinning bets - traders use them when they expect ECPG 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 ECPG implied volatility affect this butterfly?: ECPG ATM IV is at 37.00% with IV rank near 4.77%, 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.