How are FICO 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 FICO butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.10%), the computed maximum profit is $4,419.55 per contract and the computed maximum loss is -$1,390.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FICO butterfly?

The breakeven for the FICO butterfly priced on this page is roughly $1,053.90 and $1,146.31 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 FICO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FICO implied volatility affect this butterfly?

FICO ATM IV is at 48.10% with IV rank near 35.51%, 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.

FICO Butterfly Strategy

FICO (Fair Isaac Corporation), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.

Fair Isaac Corporation, also known as FICO, delivers advanced analytics, software solutions, and data management services designed to help businesses optimize, automate, and interconnect their crucial decision-making processes. These offerings reach clients across the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. The company operates through two main divisions: Software and Scores. The Software segment provides pre-configured decision management solutions catering to a variety of business challenges and operations, including marketing strategy, account creation, customer relations, engagement, fraud detection, financial crime compliance, and debt collection, alongside related professional services. Key among its offerings is the FICO Platform, a modular software suite built to support sophisticated analytical and decision-making applications. This segment also supplies stand-alone analytical and decisioning software that customers can customize for a broad spectrum of business needs.

FICO (Fair Isaac Corporation) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $22.55B, a trailing P/E of 29.05, a beta of 1.30 versus the broader market, a 52-week range of 870.01-1998.01, average daily share volume of 353K, a public-listing history dating back to 1987, approximately 4K full-time employees. These structural characteristics shape how FICO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.30 places FICO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FICO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on FICO?

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.

FICO snapshot

As of August 14, 2026, spot at $1,096.39, ATM IV 48.10%, IV rank 35.51%, expected move 13.79%. The butterfly on FICO 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 FICO specifically: FICO IV at 48.10% 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 13.79% (roughly $151.19 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 FICO expiries trade a higher absolute premium for lower per-day decay. Position sizing on FICO should anchor to the underlying notional of $1,096.39 per share and to the trader's directional view on FICO stock.

FICO butterfly setup

The FICO 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 FICO at $1,096.39 on that close, the first option leg uses a $1,040.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FICO 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 FICO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$1,040.00	$96.95
Sell 2	Call	$1,100.00	$63.70
Buy 1	Call	$1,150.00	$44.35

FICO butterfly risk and reward

Net Premium / Debit: -$1,390.00
Max Profit (per contract): $4,419.55
Max Loss (per contract): -$1,390.00
Breakeven(s): $1,053.90, $1,146.31
Risk / Reward Ratio: 3.180

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.

FICO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on FICO. 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%	-$1,390.00
$242.43	-77.9%	-$1,390.00
$484.84	-55.8%	-$1,390.00
$727.26	-33.7%	-$1,390.00
$969.68	-11.6%	-$1,390.00
$1,212.09	+10.6%	-$390.00
$1,454.51	+32.7%	-$390.00
$1,696.93	+54.8%	-$390.00
$1,939.34	+76.9%	-$390.00
$2,181.76	+99.0%	-$390.00

When traders use butterfly on FICO

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

FICO thesis for this butterfly

The market-implied 1-standard-deviation range for FICO extends from approximately $945.20 on the downside to $1,247.58 on the upside. A FICO long call butterfly is a pinning play: it pays maximum at the middle strike if FICO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FICO IV rank near 35.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on FICO should anchor more to the directional view and the expected-move geometry. As a Technology name, FICO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FICO-specific events.

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

Frequently asked questions

What is a butterfly on FICO?: A butterfly on FICO is the butterfly strategy applied to FICO (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 FICO stock at $1,096.39 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FICO chain strike and the premiums come straight from that session's bid/ask midpoint.
How are FICO 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 FICO butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.10%), the computed maximum profit is $4,419.55 per contract and the computed maximum loss is -$1,390.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FICO butterfly?: The breakeven for the FICO butterfly priced on this page is roughly $1,053.90 and $1,146.31 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 FICO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on FICO?: Butterflies on FICO are pinning bets - traders use them when they expect FICO 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 FICO implied volatility affect this butterfly?: FICO ATM IV is at 48.10% with IV rank near 35.51%, 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.