How are GIL 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 GIL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 31.50%), the computed maximum profit is $255.74 per contract and the computed maximum loss is -$235.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GIL butterfly?

The breakeven for the GIL butterfly priced on this page is roughly $54.85 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 GIL market-implied 1-standard-deviation expected move is approximately 9.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GIL implied volatility affect this butterfly?

GIL ATM IV is at 31.50% with IV rank near 3.71%, 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.

GIL Butterfly Strategy

GIL (Gildan Activewear Inc.), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NYSE.

Gildan Activewear Inc. manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Comfort Colors, American Apparel, Alstyle, and GoldToe brands. The company also offers hosiery products comprising athletic; dress; and casual, liner, therapeutic, and workwear socks, as well as sheer pantyhose, tights, and leggings under the Gildan, Under Armour, GoldToe, PowerSox, Signature Gold by Goldtoe, Peds, MediPeds, Therapy Plus, All Pro, Secret, Silks, Secret Silky, and American Apparel brands. In addition, it provides men's and boys' underwear products, and ladies panties under the Gildan and Gildan Platinum brands; and ladies' shapewear, intimates, and accessories under the Secret and Secret Silky brands. The company sells its products to wholesale distributors, screen printers, and embellishers, as well as to retailers and lifestyle brand companies. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995.

GIL (Gildan Activewear Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $8.67B, a trailing P/E of 42.11, a beta of 1.11 versus the broader market, a 52-week range of 46-73.7, average daily share volume of 1.4M, a public-listing history dating back to 1998, approximately 50K full-time employees. These structural characteristics shape how GIL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.11 places GIL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 42.11 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. GIL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on GIL?

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 GIL snapshot

As of May 15, 2026, spot at $56.55, ATM IV 31.50%, IV rank 3.71%, expected move 9.03%. The butterfly on GIL 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 GIL specifically: GIL IV at 31.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a GIL butterfly, with a market-implied 1-standard-deviation move of approximately 9.03% (roughly $5.11 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 GIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on GIL should anchor to the underlying notional of $56.55 per share and to the trader's directional view on GIL stock.

GIL butterfly setup

The GIL 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 GIL near $56.55, the first option leg uses a $52.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GIL 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 GIL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$52.50	$5.05
Sell 2	Call	$57.50	$1.83
Buy 1	Call	$60.00	$0.95

GIL butterfly risk and reward

Net Premium / Debit: -$235.00
Max Profit (per contract): $255.74
Max Loss (per contract): -$235.00
Breakeven(s): $54.85
Risk / Reward Ratio: 1.088

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.

GIL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on GIL. 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%	-$235.00
$12.51	-77.9%	-$235.00
$25.01	-55.8%	-$235.00
$37.52	-33.7%	-$235.00
$50.02	-11.5%	-$235.00
$62.52	+10.6%	+$15.00
$75.02	+32.7%	+$15.00
$87.53	+54.8%	+$15.00
$100.03	+76.9%	+$15.00
$112.53	+99.0%	+$15.00

When traders use butterfly on GIL

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

GIL thesis for this butterfly

The market-implied 1-standard-deviation range for GIL extends from approximately $51.44 on the downside to $61.66 on the upside. A GIL long call butterfly is a pinning play: it pays maximum at the middle strike if GIL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GIL IV rank near 3.71% 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 GIL at 31.50%. As a Consumer Cyclical name, GIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GIL-specific events.

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

Frequently asked questions

What is a butterfly on GIL?: A butterfly on GIL is the butterfly strategy applied to GIL (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 GIL stock trading near $56.55, the strikes shown on this page are snapped to the nearest listed GIL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GIL 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 GIL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 31.50%), the computed maximum profit is $255.74 per contract and the computed maximum loss is -$235.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GIL butterfly?: The breakeven for the GIL butterfly priced on this page is roughly $54.85 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 GIL market-implied 1-standard-deviation expected move is approximately 9.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on GIL?: Butterflies on GIL are pinning bets - traders use them when they expect GIL 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 GIL implied volatility affect this butterfly?: GIL ATM IV is at 31.50% with IV rank near 3.71%, 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.