How are ERAS 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 ERAS butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 111.70%), the computed maximum profit is $15.00 per contract and the computed maximum loss is -$85.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ERAS butterfly?

The breakeven for the ERAS butterfly priced on this page is roughly $15.15 at expiration, derived from the November 13, 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 ERAS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ERAS implied volatility affect this butterfly?

ERAS ATM IV is at 111.70% with IV rank near 31.66%, 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.

ERAS Butterfly Strategy

ERAS (Erasca, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Erasca, Inc. is a biopharmaceutical company in the clinical development stage, primarily focused on identifying, advancing, and commercializing therapeutic solutions for malignancies propelled by the RAS/MAPK pathway. The firm's pipeline features several key experimental drugs: ERAS-007, an orally administered ERK1/2 inhibitor designed to address non-small cell lung cancer, colorectal cancer, and acute myeloid leukemia; and ERAS-601, an oral SHP2 inhibitor targeting patients with advanced or metastatic solid tumors. Additionally, Erasca is progressing ERAS-801, an EGFR inhibitor capable of penetrating the central nervous system, intended for recurrent glioblastoma multiforme. The company was founded in 2018 and maintains its headquarters in San Diego, California.

ERAS (Erasca, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $5.48B, a beta of 0.65 versus the broader market, a 52-week range of 2.5-24.28, average daily share volume of 4.6M, a public-listing history dating back to 2021, approximately 103 full-time employees. These structural characteristics shape how ERAS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.65 indicates ERAS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a butterfly on ERAS?

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.

ERAS snapshot

As of November 13, 2026, spot at $15.46, ATM IV 111.70%, IV rank 31.66%, expected move 32.02%. The butterfly on ERAS below is built from the November 13, 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 ERAS specifically: ERAS IV at 111.70% 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 32.02% (roughly $4.95 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 ERAS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ERAS should anchor to the underlying notional of $15.46 per share and to the trader's directional view on ERAS stock.

ERAS butterfly setup

The ERAS butterfly below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ERAS at $15.46 on that close, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ERAS 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 ERAS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$15.00	$2.13
Sell 2	Call	$15.00	$2.13
Buy 1	Call	$16.00	$1.98

ERAS butterfly risk and reward

Net Premium / Debit: +$15.00
Max Profit (per contract): $15.00
Max Loss (per contract): -$85.00
Breakeven(s): $15.15
Risk / Reward Ratio: 0.176

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.

ERAS butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ERAS. 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%	+$15.00
$3.43	-77.8%	+$15.00
$6.84	-55.7%	+$15.00
$10.26	-33.6%	+$15.00
$13.68	-11.5%	+$15.00
$17.10	+10.6%	-$85.00
$20.51	+32.7%	-$85.00
$23.93	+54.8%	-$85.00
$27.35	+76.9%	-$85.00
$30.76	+99.0%	-$85.00

When traders use butterfly on ERAS

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

ERAS thesis for this butterfly

The market-implied 1-standard-deviation range for ERAS extends from approximately $10.51 on the downside to $20.41 on the upside. A ERAS long call butterfly is a pinning play: it pays maximum at the middle strike if ERAS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ERAS IV rank near 31.66% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ERAS should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ERAS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ERAS-specific events.

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

Frequently asked questions

What is a butterfly on ERAS?: A butterfly on ERAS is the butterfly strategy applied to ERAS (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 ERAS stock at $15.46 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed ERAS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ERAS 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 ERAS butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 111.70%), the computed maximum profit is $15.00 per contract and the computed maximum loss is -$85.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ERAS butterfly?: The breakeven for the ERAS butterfly priced on this page is roughly $15.15 at expiration, derived from the November 13, 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 ERAS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ERAS?: Butterflies on ERAS are pinning bets - traders use them when they expect ERAS 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 ERAS implied volatility affect this butterfly?: ERAS ATM IV is at 111.70% with IV rank near 31.66%, 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.