How are GL 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 GL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 21.80%), the computed maximum profit is $509.14 per contract and the computed maximum loss is -$417.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GL butterfly?

The breakeven for the GL butterfly priced on this page is roughly $149.18 and $160.83 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 GL market-implied 1-standard-deviation expected move is approximately 6.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GL implied volatility affect this butterfly?

GL ATM IV is at 21.80% with IV rank near 20.45%, 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.

GL Butterfly Strategy

GL (Globe Life Inc.), in the Financial Services sector, (Insurance - Life industry), listed on NYSE.

Globe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle to middle income households in the United States. The company operates through four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. It offers whole life, term life, and other life insurance products; Medicare supplement and supplemental health insurance, such as critical illness and accident plans; and single-premium and flexible-premium deferred annuities. The company was formerly known as Torchmark Corporation and changed its name to Globe Life Inc. in August 2019. Globe Life Inc. was incorporated in 1979 and is headquartered in McKinney, Texas.

GL (Globe Life Inc.) trades in the Financial Services sector, specifically Insurance - Life, with a market capitalization of approximately $11.88B, a trailing P/E of 10.19, a beta of 0.50 versus the broader market, a 52-week range of 116.73-156.69, average daily share volume of 499K, a public-listing history dating back to 1980, approximately 4K full-time employees. These structural characteristics shape how GL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.50 indicates GL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 10.19 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. GL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on GL?

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 GL snapshot

As of May 15, 2026, spot at $154.95, ATM IV 21.80%, IV rank 20.45%, expected move 6.25%. The butterfly on GL 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 GL specifically: GL IV at 21.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a GL butterfly, with a market-implied 1-standard-deviation move of approximately 6.25% (roughly $9.68 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 GL expiries trade a higher absolute premium for lower per-day decay. Position sizing on GL should anchor to the underlying notional of $154.95 per share and to the trader's directional view on GL stock.

GL butterfly setup

The GL 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 GL near $154.95, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GL 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 GL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$145.00	$12.10
Sell 2	Call	$155.00	$4.40
Buy 1	Call	$165.00	$0.88

GL butterfly risk and reward

Net Premium / Debit: -$417.50
Max Profit (per contract): $509.14
Max Loss (per contract): -$417.50
Breakeven(s): $149.18, $160.83
Risk / Reward Ratio: 1.219

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.

GL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on GL. 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%	-$417.50
$34.27	-77.9%	-$417.50
$68.53	-55.8%	-$417.50
$102.79	-33.7%	-$417.50
$137.05	-11.6%	-$417.50
$171.31	+10.6%	-$417.50
$205.57	+32.7%	-$417.50
$239.82	+54.8%	-$417.50
$274.08	+76.9%	-$417.50
$308.34	+99.0%	-$417.50

When traders use butterfly on GL

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

GL thesis for this butterfly

The market-implied 1-standard-deviation range for GL extends from approximately $145.27 on the downside to $164.63 on the upside. A GL long call butterfly is a pinning play: it pays maximum at the middle strike if GL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GL IV rank near 20.45% 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 GL at 21.80%. As a Financial Services name, GL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GL-specific events.

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

Frequently asked questions

What is a butterfly on GL?: A butterfly on GL is the butterfly strategy applied to GL (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 GL stock trading near $154.95, the strikes shown on this page are snapped to the nearest listed GL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GL 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 GL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 21.80%), the computed maximum profit is $509.14 per contract and the computed maximum loss is -$417.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GL butterfly?: The breakeven for the GL butterfly priced on this page is roughly $149.18 and $160.83 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 GL market-implied 1-standard-deviation expected move is approximately 6.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on GL?: Butterflies on GL are pinning bets - traders use them when they expect GL 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 GL implied volatility affect this butterfly?: GL ATM IV is at 21.80% with IV rank near 20.45%, 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.