How are FORM 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 FORM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 84.30%), the computed maximum profit is $447.84 per contract and the computed maximum loss is -$10.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FORM butterfly?

The breakeven for the FORM butterfly priced on this page is roughly $119.45 and $130.33 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 FORM market-implied 1-standard-deviation expected move is approximately 24.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FORM implied volatility affect this butterfly?

FORM ATM IV is at 84.30% with IV rank near 43.54%, 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.

FORM Butterfly Strategy

FORM (FormFactor, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions. It operates in two segments, Probe Cards and Systems. The company offers probe cards to test various semiconductor device types, including systems on a chip products, mobile application processors, microprocessors, microcontrollers, and graphic processors, as well as radio frequency, analog, mixed signal, image sensor, electro-optical, dynamic random access memory, NAND flash memory, and NOR flash memory devices; and analytical probes, which are used for a range of applications, including device characterization, electrical simulation model development, failure analysis, and prototype design debugging for universities, research institutions, semiconductor integrated device manufacturers, semiconductor foundries, and fabless semiconductor companies. It also provides probing systems for semiconductor design engineers to capture and analyze accurate data; surface metrology systems for the development, production, and quality control of semiconductor products; thermal subsystems, such as thermal chucks and other test systems used in probe stations and other applications; and precision cryogenic instruments, semiconductor tests, and measurement systems. In addition, the company offers on-site probe card maintenance and service training, seminars, and telephone support services. The company markets and sells its products through direct sales force, manufacturers' representatives, and distributors in the United States, Taiwan, South Korea, China, Japan, Europe, rest of Asia-Pacific, and internationally.

FORM (FormFactor, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $10.08B, a trailing P/E of 147.25, a beta of 1.33 versus the broader market, a 52-week range of 26.08-159.09, average daily share volume of 1.7M, a public-listing history dating back to 2003, approximately 2K full-time employees. These structural characteristics shape how FORM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.33 indicates FORM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 147.25 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.

What is a butterfly on FORM?

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 FORM snapshot

As of May 15, 2026, spot at $126.05, ATM IV 84.30%, IV rank 43.54%, expected move 24.17%. The butterfly on FORM 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 FORM specifically: FORM IV at 84.30% 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 24.17% (roughly $30.46 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 FORM expiries trade a higher absolute premium for lower per-day decay. Position sizing on FORM should anchor to the underlying notional of $126.05 per share and to the trader's directional view on FORM stock.

FORM butterfly setup

The FORM 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 FORM near $126.05, the first option leg uses a $120.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FORM 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 FORM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$120.00	$16.45
Sell 2	Call	$125.00	$13.80
Buy 1	Call	$130.00	$11.25

FORM butterfly risk and reward

Net Premium / Debit: -$10.00
Max Profit (per contract): $447.84
Max Loss (per contract): -$10.00
Breakeven(s): $119.45, $130.33
Risk / Reward Ratio: 44.784

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.

FORM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on FORM. 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%	-$10.00
$27.88	-77.9%	-$10.00
$55.75	-55.8%	-$10.00
$83.62	-33.7%	-$10.00
$111.49	-11.6%	-$10.00
$139.36	+10.6%	-$10.00
$167.23	+32.7%	-$10.00
$195.09	+54.8%	-$10.00
$222.96	+76.9%	-$10.00
$250.83	+99.0%	-$10.00

When traders use butterfly on FORM

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

FORM thesis for this butterfly

The market-implied 1-standard-deviation range for FORM extends from approximately $95.59 on the downside to $156.51 on the upside. A FORM long call butterfly is a pinning play: it pays maximum at the middle strike if FORM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FORM IV rank near 43.54% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on FORM should anchor more to the directional view and the expected-move geometry. As a Technology name, FORM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FORM-specific events.

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

Frequently asked questions

What is a butterfly on FORM?: A butterfly on FORM is the butterfly strategy applied to FORM (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 FORM stock trading near $126.05, the strikes shown on this page are snapped to the nearest listed FORM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FORM 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 FORM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 84.30%), the computed maximum profit is $447.84 per contract and the computed maximum loss is -$10.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FORM butterfly?: The breakeven for the FORM butterfly priced on this page is roughly $119.45 and $130.33 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 FORM market-implied 1-standard-deviation expected move is approximately 24.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on FORM?: Butterflies on FORM are pinning bets - traders use them when they expect FORM 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 FORM implied volatility affect this butterfly?: FORM ATM IV is at 84.30% with IV rank near 43.54%, 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.