How are GTX 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 GTX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 65.10%), the computed maximum profit is $149.89 per contract and the computed maximum loss is -$37.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GTX butterfly?

The breakeven for the GTX butterfly priced on this page is roughly $34.38 and $37.63 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 GTX market-implied 1-standard-deviation expected move is approximately 18.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GTX implied volatility affect this butterfly?

GTX ATM IV is at 65.10% with IV rank near 12.49%, 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.

GTX Butterfly Strategy

GTX (Garrett Motion Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.

Garrett Motion Inc., together with its global subsidiaries, specializes in the development, production, and sale of advanced turbocharging and electric-boosting systems. These innovative technologies are supplied to original equipment manufacturers (OEMs) for use in light passenger and commercial vehicles worldwide. The company's product lineup includes turbochargers for gasoline and diesel light vehicles, robust turbochargers for commercial applications, and a suite of automotive software solutions. Furthermore, Garrett Motion distributes its products to the aftermarket through an extensive network of distributors. Established in 2018, the company's corporate headquarters are situated in Rolle, Switzerland.

GTX (Garrett Motion Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $6.57B, a trailing P/E of 19.37, a beta of 0.80 versus the broader market, a 52-week range of 10.23-35.41, average daily share volume of 2.8M, a public-listing history dating back to 2018, approximately 7K full-time employees. These structural characteristics shape how GTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.80 places GTX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GTX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on GTX?

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 GTX snapshot

As of June 30, 2026, spot at $36.05, ATM IV 65.10%, IV rank 12.49%, expected move 18.66%. The butterfly on GTX 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 17-day expiry.

Why this butterfly structure on GTX specifically: GTX IV at 65.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a GTX butterfly, with a market-implied 1-standard-deviation move of approximately 18.66% (roughly $6.73 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on GTX should anchor to the underlying notional of $36.05 per share and to the trader's directional view on GTX stock.

GTX butterfly setup

The GTX 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 GTX near $36.05, the first option leg uses a $34.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GTX chain at a 17-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 GTX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$34.00	$2.90
Sell 2	Call	$36.00	$1.73
Buy 1	Call	$38.00	$0.93

GTX butterfly risk and reward

Net Premium / Debit: -$37.50
Max Profit (per contract): $149.89
Max Loss (per contract): -$37.50
Breakeven(s): $34.38, $37.63
Risk / Reward Ratio: 3.997

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.

GTX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on GTX. 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%	-$37.50
$7.98	-77.9%	-$37.50
$15.95	-55.8%	-$37.50
$23.92	-33.6%	-$37.50
$31.89	-11.5%	-$37.50
$39.86	+10.6%	-$37.50
$47.83	+32.7%	-$37.50
$55.80	+54.8%	-$37.50
$63.77	+76.9%	-$37.50
$71.74	+99.0%	-$37.50

When traders use butterfly on GTX

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

GTX thesis for this butterfly

The market-implied 1-standard-deviation range for GTX extends from approximately $29.32 on the downside to $42.78 on the upside. A GTX long call butterfly is a pinning play: it pays maximum at the middle strike if GTX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GTX IV rank near 12.49% 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 GTX at 65.10%. As a Consumer Cyclical name, GTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GTX-specific events.

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

Frequently asked questions

What is a butterfly on GTX?: A butterfly on GTX is the butterfly strategy applied to GTX (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 GTX stock trading near $36.05, the strikes shown on this page are snapped to the nearest listed GTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GTX 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 GTX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 65.10%), the computed maximum profit is $149.89 per contract and the computed maximum loss is -$37.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GTX butterfly?: The breakeven for the GTX butterfly priced on this page is roughly $34.38 and $37.63 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 GTX market-implied 1-standard-deviation expected move is approximately 18.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on GTX?: Butterflies on GTX are pinning bets - traders use them when they expect GTX 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 GTX implied volatility affect this butterfly?: GTX ATM IV is at 65.10% with IV rank near 12.49%, 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.