How are FNV 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 FNV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.70%), the computed maximum profit is $1,159.54 per contract and the computed maximum loss is -$805.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FNV butterfly?

The breakeven for the FNV butterfly priced on this page is roughly $218.05 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 FNV market-implied 1-standard-deviation expected move is approximately 10.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FNV implied volatility affect this butterfly?

FNV ATM IV is at 37.70% with IV rank near 49.10%, 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.

FNV Butterfly Strategy

FNV (Franco-Nevada Corporation), in the Basic Materials sector, (Gold industry), listed on NYSE.

Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in Latin America, the United States, Canada, and internationally. It operates in two segments, Mining and Energy. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and energy comprising oil, gas, and natural gas liquids. The company was founded in 1983 and is headquartered in Toronto, Canada.

FNV (Franco-Nevada Corporation) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $46.42B, a trailing P/E of 41.53, a beta of 0.89 versus the broader market, a 52-week range of 152.89-285.67, average daily share volume of 811K, a public-listing history dating back to 2007, approximately 38 full-time employees. These structural characteristics shape how FNV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.89 places FNV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 41.53 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. FNV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on FNV?

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 FNV snapshot

As of May 15, 2026, spot at $226.23, ATM IV 37.70%, IV rank 49.10%, expected move 10.81%. The butterfly on FNV 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 34-day expiry.

Why this butterfly structure on FNV specifically: FNV IV at 37.70% 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 10.81% (roughly $24.45 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FNV expiries trade a higher absolute premium for lower per-day decay. Position sizing on FNV should anchor to the underlying notional of $226.23 per share and to the trader's directional view on FNV stock.

FNV butterfly setup

The FNV 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 FNV near $226.23, the first option leg uses a $210.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FNV chain at a 34-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 FNV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$210.00	$20.75
Sell 2	Call	$230.00	$9.05
Buy 1	Call	$240.00	$5.40

FNV butterfly risk and reward

Net Premium / Debit: -$805.00
Max Profit (per contract): $1,159.54
Max Loss (per contract): -$805.00
Breakeven(s): $218.05
Risk / Reward Ratio: 1.440

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.

FNV butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on FNV. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$805.00
$50.03	-77.9%	-$805.00
$100.05	-55.8%	-$805.00
$150.07	-33.7%	-$805.00
$200.09	-11.6%	-$805.00
$250.11	+10.6%	+$195.00
$300.13	+32.7%	+$195.00
$350.15	+54.8%	+$195.00
$400.17	+76.9%	+$195.00
$450.19	+99.0%	+$195.00

When traders use butterfly on FNV

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

FNV thesis for this butterfly

The market-implied 1-standard-deviation range for FNV extends from approximately $201.78 on the downside to $250.68 on the upside. A FNV long call butterfly is a pinning play: it pays maximum at the middle strike if FNV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FNV IV rank near 49.10% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on FNV should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, FNV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FNV-specific events.

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

Frequently asked questions

What is a butterfly on FNV?: A butterfly on FNV is the butterfly strategy applied to FNV (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 FNV stock trading near $226.23, the strikes shown on this page are snapped to the nearest listed FNV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FNV 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 FNV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.70%), the computed maximum profit is $1,159.54 per contract and the computed maximum loss is -$805.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FNV butterfly?: The breakeven for the FNV butterfly priced on this page is roughly $218.05 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 FNV market-implied 1-standard-deviation expected move is approximately 10.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on FNV?: Butterflies on FNV are pinning bets - traders use them when they expect FNV 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 FNV implied volatility affect this butterfly?: FNV ATM IV is at 37.70% with IV rank near 49.10%, 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.