How are EIX 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 EIX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.30%), the computed maximum profit is $330.23 per contract and the computed maximum loss is -$162.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a EIX butterfly?

The breakeven for the EIX butterfly priced on this page is roughly $69.13 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 EIX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current EIX implied volatility affect this butterfly?

EIX ATM IV is at 33.30% with IV rank near 27.23%, 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.

EIX Butterfly Strategy

EIX (Edison International), in the Utilities sector, (Regulated Electric industry), listed on NYSE.

Headquartered in Rosemead, California, and established in 1886, Edison International primarily operates through its subsidiaries to produce and supply electrical power. This utility company furnishes electricity to a vast client base of around 15 million, encompassing homes, businesses, industrial sites, governmental bodies, and agricultural enterprises throughout Southern, Central, and Coastal California. Beyond power delivery, Edison International also offers bespoke energy solutions tailored for its commercial and industrial clientele. Its extensive infrastructure includes a robust transmission network featuring lines that range from 55 kV to 500 kV, alongside numerous substations. The company's distribution system is equally substantial, comprising approximately 39,000 circuit-miles of overhead cabling, roughly 31,000 circuit-miles of underground lines, and 800 distribution substations.

EIX (Edison International) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $26.70B, a trailing P/E of 6.96, a beta of 0.65 versus the broader market, a 52-week range of 52-81.62, average daily share volume of 2.7M, a public-listing history dating back to 1973, approximately 14K full-time employees. These structural characteristics shape how EIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.65 indicates EIX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 6.96 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. EIX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on EIX?

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.

EIX snapshot

As of August 14, 2026, spot at $71.49, ATM IV 33.30%, IV rank 27.23%, expected move 9.55%. The butterfly on EIX 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 63-day expiry.

Why this butterfly structure on EIX specifically: EIX IV at 33.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a EIX butterfly, with a market-implied 1-standard-deviation move of approximately 9.55% (roughly $6.83 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on EIX should anchor to the underlying notional of $71.49 per share and to the trader's directional view on EIX stock.

EIX butterfly setup

The EIX 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 EIX at $71.49 on that close, the first option leg uses a $67.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EIX chain at a 63-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 EIX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$67.50	$5.90
Sell 2	Call	$72.50	$3.25
Buy 1	Call	$75.00	$2.23

EIX butterfly risk and reward

Net Premium / Debit: -$162.50
Max Profit (per contract): $330.23
Max Loss (per contract): -$162.50
Breakeven(s): $69.13
Risk / Reward Ratio: 2.032

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.

EIX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on EIX. 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%	-$162.50
$15.82	-77.9%	-$162.50
$31.62	-55.8%	-$162.50
$47.43	-33.7%	-$162.50
$63.23	-11.5%	-$162.50
$79.04	+10.6%	+$87.50
$94.84	+32.7%	+$87.50
$110.65	+54.8%	+$87.50
$126.46	+76.9%	+$87.50
$142.26	+99.0%	+$87.50

When traders use butterfly on EIX

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

EIX thesis for this butterfly

The market-implied 1-standard-deviation range for EIX extends from approximately $64.66 on the downside to $78.32 on the upside. A EIX long call butterfly is a pinning play: it pays maximum at the middle strike if EIX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current EIX IV rank near 27.23% 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 EIX at 33.30%. As a Utilities name, EIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EIX-specific events.

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

Frequently asked questions

What is a butterfly on EIX?: A butterfly on EIX is the butterfly strategy applied to EIX (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 EIX stock at $71.49 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed EIX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are EIX 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 EIX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.30%), the computed maximum profit is $330.23 per contract and the computed maximum loss is -$162.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EIX butterfly?: The breakeven for the EIX butterfly priced on this page is roughly $69.13 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 EIX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on EIX?: Butterflies on EIX are pinning bets - traders use them when they expect EIX 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 EIX implied volatility affect this butterfly?: EIX ATM IV is at 33.30% with IV rank near 27.23%, 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.