How are GEHC 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 GEHC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.58%), the computed maximum profit is $238.91 per contract and the computed maximum loss is -$145.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GEHC butterfly?

The breakeven for the GEHC butterfly priced on this page is roughly $60.45 and $65.55 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 GEHC market-implied 1-standard-deviation expected move is approximately 8.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GEHC implied volatility affect this butterfly?

GEHC ATM IV is at 30.58% with IV rank near 46.67%, 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.

GEHC Butterfly Strategy

GEHC (GE HealthCare Technologies Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.

GE HealthCare Technologies Inc. engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients in the United States, Canada, Europe, the Middle East, Africa, China, Taiwan, Mongolia, Hong Kong, and internationally. The company operates through four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The Imaging segment offers molecular imaging, computed tomography (CT) scanning, magnetic resonance (MR) imaging, image-guided therapy, and X-ray systems, as well as women's health products. The Ultrasound segment provides screening, diagnosis, treatment, and monitoring of certain diseases through radiology and primary care, women's health, cardiovascular, and point of care and handheld ultrasound solutions, as well as surgical visualization and guidance products. The Patient Care Solutions segment involved in the provision of medical devices, consumable products, services, and digital solutions through patient monitoring, anesthesia delivery and respiratory care, diagnostic cardiology, and maternal infant care products. The Pharmaceutical Diagnostics supplies diagnostic agents, including CT, angiography and X-ray, MR, single-photon emission computed tomography, positron emission tomography, and ultrasound to the radiology and nuclear medicine industry.

GEHC (GE HealthCare Technologies Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $28.15B, a trailing P/E of 18.75, a beta of 0.87 versus the broader market, a 52-week range of 58.75-89.77, average daily share volume of 4.4M, a public-listing history dating back to 2022, approximately 53K full-time employees. These structural characteristics shape how GEHC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.87 places GEHC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GEHC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on GEHC?

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 GEHC snapshot

As of May 14, 2026, spot at $62.52, ATM IV 30.58%, IV rank 46.67%, expected move 8.77%. The butterfly on GEHC 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 28-day expiry.

Why this butterfly structure on GEHC specifically: GEHC IV at 30.58% 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 8.77% (roughly $5.48 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GEHC expiries trade a higher absolute premium for lower per-day decay. Position sizing on GEHC should anchor to the underlying notional of $62.52 per share and to the trader's directional view on GEHC stock.

GEHC butterfly setup

The GEHC 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 GEHC near $62.52, the first option leg uses a $59.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GEHC chain at a 28-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 GEHC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$59.00	$3.40
Sell 2	Call	$63.00	$1.25
Buy 1	Call	$66.00	$0.55

GEHC butterfly risk and reward

Net Premium / Debit: -$145.00
Max Profit (per contract): $238.91
Max Loss (per contract): -$145.00
Breakeven(s): $60.45, $65.55
Risk / Reward Ratio: 1.648

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.

GEHC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on GEHC. 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%	-$145.00
$13.83	-77.9%	-$145.00
$27.65	-55.8%	-$145.00
$41.48	-33.7%	-$145.00
$55.30	-11.5%	-$145.00
$69.12	+10.6%	-$45.00
$82.94	+32.7%	-$45.00
$96.77	+54.8%	-$45.00
$110.59	+76.9%	-$45.00
$124.41	+99.0%	-$45.00

When traders use butterfly on GEHC

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

GEHC thesis for this butterfly

The market-implied 1-standard-deviation range for GEHC extends from approximately $57.04 on the downside to $68.00 on the upside. A GEHC long call butterfly is a pinning play: it pays maximum at the middle strike if GEHC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GEHC IV rank near 46.67% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on GEHC should anchor more to the directional view and the expected-move geometry. As a Healthcare name, GEHC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GEHC-specific events.

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

Frequently asked questions

What is a butterfly on GEHC?: A butterfly on GEHC is the butterfly strategy applied to GEHC (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 GEHC stock trading near $62.52, the strikes shown on this page are snapped to the nearest listed GEHC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GEHC 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 GEHC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.58%), the computed maximum profit is $238.91 per contract and the computed maximum loss is -$145.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GEHC butterfly?: The breakeven for the GEHC butterfly priced on this page is roughly $60.45 and $65.55 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 GEHC market-implied 1-standard-deviation expected move is approximately 8.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on GEHC?: Butterflies on GEHC are pinning bets - traders use them when they expect GEHC 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 GEHC implied volatility affect this butterfly?: GEHC ATM IV is at 30.58% with IV rank near 46.67%, 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.