How are FTNT 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 FTNT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 67.56%), the computed maximum profit is $682.22 per contract and the computed maximum loss is -$277.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FTNT butterfly?

The breakeven for the FTNT butterfly priced on this page is roughly $159.73 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 FTNT market-implied 1-standard-deviation expected move is approximately 19.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FTNT implied volatility affect this butterfly?

FTNT ATM IV is at 67.56% with IV rank near 100.00%, 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.

FTNT Butterfly Strategy

FTNT (Fortinet, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.

Fortinet, Inc. specializes in delivering extensive, unified, and automated cybersecurity solutions to a global clientele, encompassing the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. At its core, the company offers FortiGate, a powerful platform combining hardware and software licenses that provides a comprehensive suite of security and networking functionalities. This includes firewall capabilities, intrusion prevention, anti-malware defense, virtual private network (VPN) services, application control, web filtering, anti-spam measures, and wide area network (WAN) acceleration. Beyond its flagship product, Fortinet provides a diverse portfolio of specialized security tools. These range from FortiSwitch for secure network switching and FortiAP for robust wireless connectivity, to FortiExtender, a versatile hardware appliance. For centralized network visibility and control, clients utilize FortiAnalyzer for logging, analysis, and reporting, and FortiManager for scalable administration of FortiGate devices.

FTNT (Fortinet, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $110.89B, a trailing P/E of 57.21, a beta of 1.11 versus the broader market, a 52-week range of 70.12-152.77, average daily share volume of 6.4M, a public-listing history dating back to 2009, approximately 15K full-time employees. These structural characteristics shape how FTNT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.11 places FTNT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 57.21 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 FTNT?

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 FTNT snapshot

As of June 30, 2026, spot at $153.67, ATM IV 67.56%, IV rank 100.00%, expected move 19.37%. The butterfly on FTNT 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 31-day expiry.

Why this butterfly structure on FTNT specifically: FTNT IV at 67.56% is rich versus its 1-year range, which makes a premium-buying FTNT butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 19.37% (roughly $29.76 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FTNT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTNT should anchor to the underlying notional of $153.67 per share and to the trader's directional view on FTNT stock.

FTNT butterfly setup

The FTNT 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 FTNT near $153.67, the first option leg uses a $146.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTNT chain at a 31-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 FTNT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$146.00	$16.68
Sell 2	Call	$152.50	$13.18
Buy 1	Call	$162.50	$8.95

FTNT butterfly risk and reward

Net Premium / Debit: +$72.50
Max Profit (per contract): $682.22
Max Loss (per contract): -$277.50
Breakeven(s): $159.73
Risk / Reward Ratio: 2.458

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.

FTNT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on FTNT. 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%	+$72.50
$33.99	-77.9%	+$72.50
$67.96	-55.8%	+$72.50
$101.94	-33.7%	+$72.50
$135.91	-11.6%	+$72.50
$169.89	+10.6%	-$277.50
$203.87	+32.7%	-$277.50
$237.84	+54.8%	-$277.50
$271.82	+76.9%	-$277.50
$305.80	+99.0%	-$277.50

When traders use butterfly on FTNT

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

FTNT thesis for this butterfly

The market-implied 1-standard-deviation range for FTNT extends from approximately $123.91 on the downside to $183.43 on the upside. A FTNT long call butterfly is a pinning play: it pays maximum at the middle strike if FTNT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FTNT IV rank near 100.00% 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 FTNT at 67.56%. As a Technology name, FTNT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTNT-specific events.

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

Frequently asked questions

What is a butterfly on FTNT?: A butterfly on FTNT is the butterfly strategy applied to FTNT (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 FTNT stock trading near $153.67, the strikes shown on this page are snapped to the nearest listed FTNT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FTNT 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 FTNT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 67.56%), the computed maximum profit is $682.22 per contract and the computed maximum loss is -$277.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FTNT butterfly?: The breakeven for the FTNT butterfly priced on this page is roughly $159.73 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 FTNT market-implied 1-standard-deviation expected move is approximately 19.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on FTNT?: Butterflies on FTNT are pinning bets - traders use them when they expect FTNT 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 FTNT implied volatility affect this butterfly?: FTNT ATM IV is at 67.56% with IV rank near 100.00%, 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.