How are FTAI 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 FTAI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 82.65%), the computed maximum profit is $1,230.11 per contract and the computed maximum loss is -$210.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FTAI butterfly?

The breakeven for the FTAI butterfly priced on this page is roughly $272.90 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 FTAI market-implied 1-standard-deviation expected move is approximately 23.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FTAI implied volatility affect this butterfly?

FTAI ATM IV is at 82.65% with IV rank near 91.05%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

FTAI Butterfly Strategy

FTAI (FTAI Aviation Ltd.), in the Industrials sector, (Rental & Leasing Services industry), listed on NASDAQ.

FTAI Aviation Ltd. is a company dedicated to the ownership and acquisition of critical equipment for the aviation and offshore energy industries, thereby supporting the worldwide movement of goods and people. The company operates through two primary divisions. The Aviation Leasing segment is responsible for managing, leasing, and selling aviation assets, which include commercial aircraft and their engines, to customers. By the end of 2023, specifically December 31st, this division's managed portfolio encompassed 363 aviation assets in total, consisting of 96 commercial aircraft and 267 engines. Notably, this count included 8 aircraft and 17 engines located in Russia. The Aerospace Products segment focuses on the entire lifecycle of aircraft engines and their aftermarket components, covering their development, production, maintenance, and sales.

FTAI (FTAI Aviation Ltd.) trades in the Industrials sector, specifically Rental & Leasing Services, with a market capitalization of approximately $26.68B, a trailing P/E of 49.72, a beta of 1.52 versus the broader market, a 52-week range of 108.47-323.51, average daily share volume of 1.2M, a public-listing history dating back to 2015, approximately 580 full-time employees. These structural characteristics shape how FTAI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.52 indicates FTAI 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 49.72 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. FTAI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on FTAI?

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 FTAI snapshot

As of June 29, 2026, spot at $261.91, ATM IV 82.65%, IV rank 91.05%, expected move 23.70%. The butterfly on FTAI 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 32-day expiry.

Why this butterfly structure on FTAI specifically: FTAI IV at 82.65% is rich versus its 1-year range, which makes a premium-buying FTAI butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 23.70% (roughly $62.06 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FTAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTAI should anchor to the underlying notional of $261.91 per share and to the trader's directional view on FTAI stock.

FTAI butterfly setup

The FTAI 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 FTAI near $261.91, the first option leg uses a $250.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTAI chain at a 32-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 FTAI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$250.00	$31.75
Sell 2	Call	$260.00	$28.10
Buy 1	Call	$275.00	$21.55

FTAI butterfly risk and reward

Net Premium / Debit: +$290.00
Max Profit (per contract): $1,230.11
Max Loss (per contract): -$210.00
Breakeven(s): $272.90
Risk / Reward Ratio: 5.858

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.

FTAI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on FTAI. 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%	+$290.00
$57.92	-77.9%	+$290.00
$115.83	-55.8%	+$290.00
$173.74	-33.7%	+$290.00
$231.64	-11.6%	+$290.00
$289.55	+10.6%	-$210.00
$347.46	+32.7%	-$210.00
$405.37	+54.8%	-$210.00
$463.28	+76.9%	-$210.00
$521.19	+99.0%	-$210.00

When traders use butterfly on FTAI

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

FTAI thesis for this butterfly

The market-implied 1-standard-deviation range for FTAI extends from approximately $199.85 on the downside to $323.97 on the upside. A FTAI long call butterfly is a pinning play: it pays maximum at the middle strike if FTAI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FTAI IV rank near 91.05% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on FTAI at 82.65%. As a Industrials name, FTAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTAI-specific events.

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

Frequently asked questions

What is a butterfly on FTAI?: A butterfly on FTAI is the butterfly strategy applied to FTAI (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 FTAI stock trading near $261.91, the strikes shown on this page are snapped to the nearest listed FTAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FTAI 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 FTAI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 82.65%), the computed maximum profit is $1,230.11 per contract and the computed maximum loss is -$210.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FTAI butterfly?: The breakeven for the FTAI butterfly priced on this page is roughly $272.90 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 FTAI market-implied 1-standard-deviation expected move is approximately 23.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on FTAI?: Butterflies on FTAI are pinning bets - traders use them when they expect FTAI 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 FTAI implied volatility affect this butterfly?: FTAI ATM IV is at 82.65% with IV rank near 91.05%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.