How are GPC 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 GPC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 31.80%), the computed maximum profit is $301.99 per contract and the computed maximum loss is -$170.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GPC butterfly?

The breakeven for the GPC butterfly priced on this page is roughly $91.70 and $98.30 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 GPC market-implied 1-standard-deviation expected move is approximately 9.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GPC implied volatility affect this butterfly?

GPC ATM IV is at 31.80% with IV rank near 57.38%, 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.

GPC Butterfly Strategy

GPC (Genuine Parts Company), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NYSE.

Genuine Parts Company distributes automotive replacement parts, and industrial parts and materials. It operates through Automotive Parts Group and Industrial Parts Group segments. The company distributes automotive replacement parts for hybrid and electric vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment, and heavy duty equipment; and accessory and supply items used by various automotive aftermarket customers, such as repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns, and individuals. It also distributes industrial replacement parts and related supplies, such as bearings, mechanical and electrical power transmission products, industrial automation and robotics, hoses, hydraulic and pneumatic components, industrial and safety supplies, and material handling products for original equipment manufacturer, as well as maintenance, repair, and operation customers in equipment and machinery, food and beverage, forest product, primary metal, pulp and paper, mining, automotive, oil and gas, petrochemical, pharmaceutical, power generation, alternative energy, governments, transportation, ports, and other industries. In addition, the company provides various services and repairs comprising gearbox and fluid power and process pump assembly and repair, hydraulic drive shaft repair, electrical panel assembly and repair, hose and gasket manufacture and assembly, and other value-added services. It operates in the United States, Canada, France, the United Kingdom, Ireland, Germany, Poland, the Netherlands, Belgium, Australia, New Zealand, Mexico, Indonesia, and Singapore.

GPC (Genuine Parts Company) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $13.76B, a trailing P/E of 226.45, a beta of 0.71 versus the broader market, a 52-week range of 96.08-151.57, average daily share volume of 2.0M, a public-listing history dating back to 1980, approximately 63K full-time employees. These structural characteristics shape how GPC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.71 places GPC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 226.45 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. GPC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on GPC?

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 GPC snapshot

As of May 15, 2026, spot at $92.94, ATM IV 31.80%, IV rank 57.38%, expected move 9.12%. The butterfly on GPC 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 GPC specifically: GPC IV at 31.80% 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 9.12% (roughly $8.47 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 GPC expiries trade a higher absolute premium for lower per-day decay. Position sizing on GPC should anchor to the underlying notional of $92.94 per share and to the trader's directional view on GPC stock.

GPC butterfly setup

The GPC 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 GPC near $92.94, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GPC 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 GPC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$90.00	$5.35
Sell 2	Call	$95.00	$2.35
Buy 1	Call	$100.00	$1.05

GPC butterfly risk and reward

Net Premium / Debit: -$170.00
Max Profit (per contract): $301.99
Max Loss (per contract): -$170.00
Breakeven(s): $91.70, $98.30
Risk / Reward Ratio: 1.776

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.

GPC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on GPC. 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%	-$170.00
$20.56	-77.9%	-$170.00
$41.11	-55.8%	-$170.00
$61.66	-33.7%	-$170.00
$82.20	-11.6%	-$170.00
$102.75	+10.6%	-$170.00
$123.30	+32.7%	-$170.00
$143.85	+54.8%	-$170.00
$164.40	+76.9%	-$170.00
$184.95	+99.0%	-$170.00

When traders use butterfly on GPC

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

GPC thesis for this butterfly

The market-implied 1-standard-deviation range for GPC extends from approximately $84.47 on the downside to $101.41 on the upside. A GPC long call butterfly is a pinning play: it pays maximum at the middle strike if GPC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GPC IV rank near 57.38% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on GPC should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, GPC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GPC-specific events.

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

Frequently asked questions

What is a butterfly on GPC?: A butterfly on GPC is the butterfly strategy applied to GPC (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 GPC stock trading near $92.94, the strikes shown on this page are snapped to the nearest listed GPC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GPC 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 GPC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 31.80%), the computed maximum profit is $301.99 per contract and the computed maximum loss is -$170.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GPC butterfly?: The breakeven for the GPC butterfly priced on this page is roughly $91.70 and $98.30 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 GPC market-implied 1-standard-deviation expected move is approximately 9.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on GPC?: Butterflies on GPC are pinning bets - traders use them when they expect GPC 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 GPC implied volatility affect this butterfly?: GPC ATM IV is at 31.80% with IV rank near 57.38%, 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.