How are HAL 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 HAL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 39.44%), the computed maximum profit is $106.44 per contract and the computed maximum loss is -$80.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HAL butterfly?

The breakeven for the HAL butterfly priced on this page is roughly $32.80 and $35.20 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 HAL market-implied 1-standard-deviation expected move is approximately 11.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HAL implied volatility affect this butterfly?

HAL ATM IV is at 39.44% with IV rank near 51.14%, 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.

HAL Butterfly Strategy

HAL (Halliburton Company), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.

Halliburton Company (HAL) is a global supplier of products and services tailored for the energy sector. Its operations are structured into two primary divisions: Completion and Production, and Drilling and Evaluation. The Completion and Production segment focuses on enhancing well output through techniques like stimulation and sand control. It provides cementing services for well integrity, including casing and bonding, alongside a range of specialized downhole completion tools such as intelligent well systems, liner hangers, and multilateral solutions. This segment also supports production with offerings like coiled tubing, hydraulic workover units, pumping, and nitrogen services, in addition to managing pipeline and process services from initial setup (pre-commissioning, commissioning) through ongoing maintenance and eventual retirement (decommissioning). Furthermore, it supplies electrical submersible pumps and delivers artificial lift solutions.

HAL (Halliburton Company) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $28.58B, a trailing P/E of 18.59, a beta of 0.70 versus the broader market, a 52-week range of 20.09-43.59, average daily share volume of 13.0M, a public-listing history dating back to 1972, approximately 48K full-time employees. These structural characteristics shape how HAL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.70 places HAL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HAL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on HAL?

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 HAL snapshot

As of June 30, 2026, spot at $33.96, ATM IV 39.44%, IV rank 51.14%, expected move 11.31%. The butterfly on HAL 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 31-day expiry.

Why this butterfly structure on HAL specifically: HAL IV at 39.44% 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 11.31% (roughly $3.84 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HAL expiries trade a higher absolute premium for lower per-day decay. Position sizing on HAL should anchor to the underlying notional of $33.96 per share and to the trader's directional view on HAL stock.

HAL butterfly setup

The HAL 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 HAL near $33.96, the first option leg uses a $32.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HAL chain at a 31-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 HAL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$32.00	$3.23
Sell 2	Call	$34.00	$1.63
Buy 1	Call	$36.00	$0.84

HAL butterfly risk and reward

Net Premium / Debit: -$80.00
Max Profit (per contract): $106.44
Max Loss (per contract): -$80.00
Breakeven(s): $32.80, $35.20
Risk / Reward Ratio: 1.330

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.

HAL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on HAL. 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%	-$80.00
$7.52	-77.9%	-$80.00
$15.03	-55.8%	-$80.00
$22.53	-33.6%	-$80.00
$30.04	-11.5%	-$80.00
$37.55	+10.6%	-$80.00
$45.06	+32.7%	-$80.00
$52.56	+54.8%	-$80.00
$60.07	+76.9%	-$80.00
$67.58	+99.0%	-$80.00

When traders use butterfly on HAL

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

HAL thesis for this butterfly

The market-implied 1-standard-deviation range for HAL extends from approximately $30.12 on the downside to $37.80 on the upside. A HAL long call butterfly is a pinning play: it pays maximum at the middle strike if HAL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HAL IV rank near 51.14% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on HAL should anchor more to the directional view and the expected-move geometry. As a Energy name, HAL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HAL-specific events.

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

Frequently asked questions

What is a butterfly on HAL?: A butterfly on HAL is the butterfly strategy applied to HAL (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 HAL stock trading near $33.96, the strikes shown on this page are snapped to the nearest listed HAL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HAL 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 HAL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 39.44%), the computed maximum profit is $106.44 per contract and the computed maximum loss is -$80.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HAL butterfly?: The breakeven for the HAL butterfly priced on this page is roughly $32.80 and $35.20 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 HAL market-implied 1-standard-deviation expected move is approximately 11.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on HAL?: Butterflies on HAL are pinning bets - traders use them when they expect HAL 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 HAL implied volatility affect this butterfly?: HAL ATM IV is at 39.44% with IV rank near 51.14%, 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.