How are GPI 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 GPI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.50%), the computed maximum profit is $1,134.25 per contract and the computed maximum loss is -$730.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GPI butterfly?

The breakeven for the GPI butterfly priced on this page is roughly $307.30 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 GPI market-implied 1-standard-deviation expected move is approximately 10.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GPI implied volatility affect this butterfly?

GPI ATM IV is at 36.50% with IV rank near 47.17%, 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.

GPI Butterfly Strategy

GPI (Group 1 Automotive, Inc.), in the Consumer Cyclical sector, (Auto - Dealerships industry), listed on NYSE.

Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. It operates primarily in 17 states in the United States; and 35 towns in the United Kingdom. As of July 11, 2022, the company owned and operated 204 automotive dealerships, 273 franchises, and 47 collision centers that offer 35 brands of automobiles. Group 1 Automotive, Inc. was incorporated in 1995 and is based in Houston, Texas.

GPI (Group 1 Automotive, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Dealerships, with a market capitalization of approximately $3.90B, a trailing P/E of 12.06, a beta of 0.87 versus the broader market, a 52-week range of 292.44-488.39, average daily share volume of 192K, a public-listing history dating back to 1997, approximately 20K full-time employees. These structural characteristics shape how GPI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

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

What is a butterfly on GPI?

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 GPI snapshot

As of May 15, 2026, spot at $316.58, ATM IV 36.50%, IV rank 47.17%, expected move 10.46%. The butterfly on GPI 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 GPI specifically: GPI IV at 36.50% 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 10.46% (roughly $33.13 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 GPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on GPI should anchor to the underlying notional of $316.58 per share and to the trader's directional view on GPI stock.

GPI butterfly setup

The GPI 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 GPI near $316.58, the first option leg uses a $300.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GPI 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 GPI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$300.00	$24.60
Sell 2	Call	$320.00	$13.50
Buy 1	Call	$330.00	$9.70

GPI butterfly risk and reward

Net Premium / Debit: -$730.00
Max Profit (per contract): $1,134.25
Max Loss (per contract): -$730.00
Breakeven(s): $307.30
Risk / Reward Ratio: 1.554

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.

GPI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on GPI. 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%	-$730.00
$70.01	-77.9%	-$730.00
$140.00	-55.8%	-$730.00
$210.00	-33.7%	-$730.00
$280.00	-11.6%	-$730.00
$349.99	+10.6%	+$270.00
$419.99	+32.7%	+$270.00
$489.99	+54.8%	+$270.00
$559.98	+76.9%	+$270.00
$629.98	+99.0%	+$270.00

When traders use butterfly on GPI

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

GPI thesis for this butterfly

The market-implied 1-standard-deviation range for GPI extends from approximately $283.45 on the downside to $349.71 on the upside. A GPI long call butterfly is a pinning play: it pays maximum at the middle strike if GPI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GPI IV rank near 47.17% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on GPI should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, GPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GPI-specific events.

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

Frequently asked questions

What is a butterfly on GPI?: A butterfly on GPI is the butterfly strategy applied to GPI (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 GPI stock trading near $316.58, the strikes shown on this page are snapped to the nearest listed GPI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GPI 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 GPI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.50%), the computed maximum profit is $1,134.25 per contract and the computed maximum loss is -$730.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GPI butterfly?: The breakeven for the GPI butterfly priced on this page is roughly $307.30 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 GPI market-implied 1-standard-deviation expected move is approximately 10.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on GPI?: Butterflies on GPI are pinning bets - traders use them when they expect GPI 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 GPI implied volatility affect this butterfly?: GPI ATM IV is at 36.50% with IV rank near 47.17%, 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.