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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 26.77%), the computed maximum profit is $227.96 per contract and the computed maximum loss is -$162.50 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 $71.63 and $76.38 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The GEHC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.67%; 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 26.77% with IV rank near 20.12%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

GEHC Butterfly Strategy

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

GE HealthCare Technologies Inc. is a global medical technology company that creates, manufactures, and markets a diverse range of medical devices, services, and integrated digital solutions. These offerings are designed to assist in the diagnosis, treatment, and ongoing monitoring of patients. The company boasts an extensive international presence, serving markets across the United States, Canada, Europe, the Middle East, Africa, China, Taiwan, Mongolia, and Hong Kong, among other regions. Its operations are structured across four primary business divisions: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The Imaging division specializes in advanced diagnostic imaging technologies, including systems for molecular imaging, Computed Tomography (CT) scans, Magnetic Resonance (MR) imaging, image-guided therapy, and X-ray, alongside specialized women's health products. The Ultrasound segment delivers a comprehensive suite of ultrasound solutions utilized for the screening, diagnosis, treatment, and monitoring of various diseases.

GEHC (GE HealthCare Technologies Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $32.65B, a trailing P/E of 20.57, a beta of 0.82 versus the broader market, a 52-week range of 58.75-89.77, average daily share volume of 5.2M, a public-listing history dating back to 2022, approximately 54K 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 0.82 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.

GEHC snapshot

As of August 14, 2026, spot at $73.72, ATM IV 26.77%, IV rank 20.12%, expected move 7.67%. The butterfly on GEHC below is built from the August 14, 2026 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 26.77% is on the cheap side of its 1-year range, which favors premium-buying structures like a GEHC butterfly, with a market-implied 1-standard-deviation move of approximately 7.67% (roughly $5.66 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 $73.72 per share and to the trader's directional view on GEHC stock.

GEHC butterfly setup

The GEHC butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With GEHC at $73.72 on that close, the first option leg uses a $70.00 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	$70.00	$4.85
Sell 2	Call	$74.00	$2.18
Buy 1	Call	$77.00	$1.13

GEHC butterfly risk and reward

Net Premium / Debit: -$162.50
Max Profit (per contract): $227.96
Max Loss (per contract): -$162.50
Breakeven(s): $71.63, $76.38
Risk / Reward Ratio: 1.403

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.

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%	-$162.50
$16.31	-77.9%	-$162.50
$32.61	-55.8%	-$162.50
$48.91	-33.7%	-$162.50
$65.21	-11.6%	-$162.50
$81.50	+10.6%	-$62.50
$97.80	+32.7%	-$62.50
$114.10	+54.8%	-$62.50
$130.40	+76.9%	-$62.50
$146.70	+99.0%	-$62.50

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 $68.06 on the downside to $79.38 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 20.12% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on GEHC at 26.77%. 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 at $73.72 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed GEHC chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 26.77%), the computed maximum profit is $227.96 per contract and the computed maximum loss is -$162.50 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 $71.63 and $76.38 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The GEHC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.67%; 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 26.77% with IV rank near 20.12%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.