How are ETR 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 ETR butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 19.30%), the computed maximum profit is $364.13 per contract and the computed maximum loss is -$587.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ETR butterfly?

The breakeven for the ETR butterfly priced on this page is roughly $105.87 and $114.13 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 ETR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ETR implied volatility affect this butterfly?

ETR ATM IV is at 19.30% with IV rank near 2.66%, 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.

ETR Butterfly Strategy

ETR (Entergy Corporation), in the Utilities sector, (Regulated Electric industry), listed on NYSE.

Entergy Corporation, headquartered in New Orleans, Louisiana, is a prominent American energy company primarily involved in generating and distributing electricity across the United States. Its operations are divided into two main divisions: Utility and Entergy Wholesale Commodities. The Utility division manages the end-to-end process of generating, transmitting, distributing, and selling electricity. This service covers specific regions of Arkansas, Louisiana, Mississippi, and Texas, including the metropolitan area of New Orleans, providing electricity to 3 million utility customers in these states. Additionally, this segment handles natural gas distribution. In contrast, the Entergy Wholesale Commodities division focuses on the ownership, operation, and decommissioning of nuclear power facilities.

ETR (Entergy Corporation) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $50.33B, a trailing P/E of 27.22, a beta of 0.49 versus the broader market, a 52-week range of 86.4-118.45, average daily share volume of 3.3M, a public-listing history dating back to 1972, approximately 12K full-time employees. These structural characteristics shape how ETR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.49 indicates ETR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ETR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ETR?

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.

ETR snapshot

As of August 14, 2026, spot at $107.88, ATM IV 19.30%, IV rank 2.66%, expected move 5.53%. The butterfly on ETR 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 ETR specifically: ETR IV at 19.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a ETR butterfly, with a market-implied 1-standard-deviation move of approximately 5.53% (roughly $5.97 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 ETR expiries trade a higher absolute premium for lower per-day decay. Position sizing on ETR should anchor to the underlying notional of $107.88 per share and to the trader's directional view on ETR stock.

ETR butterfly setup

The ETR 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 ETR at $107.88 on that close, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ETR 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 ETR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$100.00	$9.00
Sell 2	Call	$110.00	$1.80
Buy 1	Call	$115.00	$0.47

ETR butterfly risk and reward

Net Premium / Debit: -$587.00
Max Profit (per contract): $364.13
Max Loss (per contract): -$587.00
Breakeven(s): $105.87, $114.13
Risk / Reward Ratio: 0.620

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.

ETR butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ETR. 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%	-$587.00
$23.86	-77.9%	-$587.00
$47.71	-55.8%	-$587.00
$71.57	-33.7%	-$587.00
$95.42	-11.6%	-$587.00
$119.27	+10.6%	-$87.00
$143.12	+32.7%	-$87.00
$166.97	+54.8%	-$87.00
$190.82	+76.9%	-$87.00
$214.68	+99.0%	-$87.00

When traders use butterfly on ETR

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

ETR thesis for this butterfly

The market-implied 1-standard-deviation range for ETR extends from approximately $101.91 on the downside to $113.85 on the upside. A ETR long call butterfly is a pinning play: it pays maximum at the middle strike if ETR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ETR IV rank near 2.66% 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 ETR at 19.30%. As a Utilities name, ETR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ETR-specific events.

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

Frequently asked questions

What is a butterfly on ETR?: A butterfly on ETR is the butterfly strategy applied to ETR (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 ETR stock at $107.88 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ETR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ETR 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 ETR butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 19.30%), the computed maximum profit is $364.13 per contract and the computed maximum loss is -$587.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ETR butterfly?: The breakeven for the ETR butterfly priced on this page is roughly $105.87 and $114.13 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 ETR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ETR?: Butterflies on ETR are pinning bets - traders use them when they expect ETR 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 ETR implied volatility affect this butterfly?: ETR ATM IV is at 19.30% with IV rank near 2.66%, 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.