How are ESTA 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 ESTA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.30%), the computed maximum profit is $312.10 per contract and the computed maximum loss is -$152.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ESTA butterfly?

The breakeven for the ESTA butterfly priced on this page is roughly $88.48 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current ESTA market-implied 1-standard-deviation expected move is approximately 16.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ESTA implied volatility affect this butterfly?

ESTA ATM IV is at 57.30% with IV rank near 17.12%, 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.

ESTA Butterfly Strategy

ESTA (Establishment Labs Holdings Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

Establishment Labs Holdings Inc. operates as a medical technology enterprise specializing in the creation and commercialization of devices for aesthetic and reconstructive plastic surgery. The company is primarily recognized for its silicone gel-filled breast implants, sold under the Motiva Implants brand. Among these are the Motiva Ergonomix and Motiva Ergonomix2, which are distinctive, gravity-sensitive, round, soft silicone-gel-filled implants. Furthermore, Establishment Labs provides the Motiva Flora Tissue Expander for breast tissue and distributes the Puregraft range of products, utilized for the harvesting and redistribution of autologous adipose tissue. The firm markets its offerings across Europe, Latin America, the Asia-Pacific region, and other global markets, leveraging both a direct sales force and exclusive distributors. Founded in 2004, Establishment Labs has its main office situated in Alajuela, Costa Rica.

ESTA (Establishment Labs Holdings Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $2.60B, a beta of 1.11 versus the broader market, a 52-week range of 33.35-90.5, average daily share volume of 583K, a public-listing history dating back to 2018, approximately 1K full-time employees. These structural characteristics shape how ESTA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.11 places ESTA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on ESTA?

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.

Current ESTA snapshot

As of June 30, 2026, spot at $85.78, ATM IV 57.30%, IV rank 17.12%, expected move 16.43%. The butterfly on ESTA below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.

Why this butterfly structure on ESTA specifically: ESTA IV at 57.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a ESTA butterfly, with a market-implied 1-standard-deviation move of approximately 16.43% (roughly $14.09 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ESTA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ESTA should anchor to the underlying notional of $85.78 per share and to the trader's directional view on ESTA stock.

ESTA butterfly setup

The ESTA butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ESTA near $85.78, the first option leg uses a $82.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ESTA chain at a 17-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 ESTA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$82.50	$6.30
Sell 2	Call	$85.00	$4.80
Buy 1	Call	$90.00	$2.33

ESTA butterfly risk and reward

Net Premium / Debit: +$97.50
Max Profit (per contract): $312.10
Max Loss (per contract): -$152.50
Breakeven(s): $88.48
Risk / Reward Ratio: 2.047

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.

ESTA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ESTA. 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%	+$97.50
$18.98	-77.9%	+$97.50
$37.94	-55.8%	+$97.50
$56.91	-33.7%	+$97.50
$75.87	-11.6%	+$97.50
$94.84	+10.6%	-$152.50
$113.80	+32.7%	-$152.50
$132.77	+54.8%	-$152.50
$151.73	+76.9%	-$152.50
$170.70	+99.0%	-$152.50

When traders use butterfly on ESTA

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

ESTA thesis for this butterfly

The market-implied 1-standard-deviation range for ESTA extends from approximately $71.69 on the downside to $99.87 on the upside. A ESTA long call butterfly is a pinning play: it pays maximum at the middle strike if ESTA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ESTA IV rank near 17.12% 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 ESTA at 57.30%. As a Healthcare name, ESTA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ESTA-specific events.

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

Frequently asked questions

What is a butterfly on ESTA?: A butterfly on ESTA is the butterfly strategy applied to ESTA (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 ESTA stock trading near $85.78, the strikes shown on this page are snapped to the nearest listed ESTA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ESTA 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 ESTA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.30%), the computed maximum profit is $312.10 per contract and the computed maximum loss is -$152.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ESTA butterfly?: The breakeven for the ESTA butterfly priced on this page is roughly $88.48 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current ESTA market-implied 1-standard-deviation expected move is approximately 16.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ESTA?: Butterflies on ESTA are pinning bets - traders use them when they expect ESTA 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 ESTA implied volatility affect this butterfly?: ESTA ATM IV is at 57.30% with IV rank near 17.12%, 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.