How are HONA 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 HONA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 46.10%), the computed maximum profit is $644.66 per contract and the computed maximum loss is -$310.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HONA butterfly?

The breakeven for the HONA butterfly priced on this page is roughly $171.90 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The HONA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HONA implied volatility affect this butterfly?

Current HONA ATM IV is 46.10%; IV rank context is unavailable in the current snapshot.

HONA Butterfly Strategy

HONA (Honeywell Aerospace Inc), in the Industrials sector, (Aerospace & Defense industry), listed on NASDAQ.

Honeywell Aerospace, Inc. engages in the provision of aerospace and defense critical systems and technologies. It operates through the following segments: Electronic Solutions, Engines & Power Systems, and Control Systems. The Electronic Solutions segment supplies aerospace electronic systems and technologies such as avionics and navigation sensors and electromagnetic defensive solutions. The Engine & Power Systems segment manufactures propulsion systems, APUs, and electric power solutions. The Control Systems segment handles the supply of thermal and motion control systems that enable flight, life support, and safety for the aircraft. The company was founded in 1914 and is headquartered in Phoenix, AZ.

HONA (Honeywell Aerospace Inc) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $53.18B, a trailing P/E of 70.88, a beta of 0.08 versus the broader market, a 52-week range of 150.03-297.5, average daily share volume of 3.4M, a public-listing history dating back to 2026, approximately 30K full-time employees. These structural characteristics shape how HONA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.08 indicates HONA 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 70.88 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.

What is a butterfly on HONA?

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.

HONA snapshot

As of August 14, 2026, spot at $167.06, ATM IV 46.10%, expected move 13.22%. The butterfly on HONA below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this butterfly structure on HONA specifically: IV rank is unavailable in the current snapshot, so regime-based timing for HONA is inferred from ATM IV at 46.10% alone, with a market-implied 1-standard-deviation move of approximately 13.22% (roughly $22.08 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HONA expiries trade a higher absolute premium for lower per-day decay. Position sizing on HONA should anchor to the underlying notional of $167.06 per share and to the trader's directional view on HONA stock.

HONA butterfly setup

The HONA butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With HONA at $167.06 on that close, the first option leg uses a $160.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HONA chain at a 35-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 HONA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$160.00	$13.60
Sell 2	Call	$165.00	$10.85
Buy 1	Call	$175.00	$6.20

HONA butterfly risk and reward

Net Premium / Debit: +$190.00
Max Profit (per contract): $644.66
Max Loss (per contract): -$310.00
Breakeven(s): $171.90
Risk / Reward Ratio: 2.080

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.

HONA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on HONA. 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%	+$190.00
$36.95	-77.9%	+$190.00
$73.88	-55.8%	+$190.00
$110.82	-33.7%	+$190.00
$147.76	-11.6%	+$190.00
$184.69	+10.6%	-$310.00
$221.63	+32.7%	-$310.00
$258.57	+54.8%	-$310.00
$295.50	+76.9%	-$310.00
$332.44	+99.0%	-$310.00

When traders use butterfly on HONA

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

HONA thesis for this butterfly

The market-implied 1-standard-deviation range for HONA extends from approximately $144.98 on the downside to $189.14 on the upside. A HONA long call butterfly is a pinning play: it pays maximum at the middle strike if HONA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Industrials name, HONA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HONA-specific events.

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

Frequently asked questions

What is a butterfly on HONA?: A butterfly on HONA is the butterfly strategy applied to HONA (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 HONA stock at $167.06 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HONA chain strike and the premiums come straight from that session's bid/ask midpoint.
How are HONA 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 HONA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 46.10%), the computed maximum profit is $644.66 per contract and the computed maximum loss is -$310.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HONA butterfly?: The breakeven for the HONA butterfly priced on this page is roughly $171.90 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The HONA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on HONA?: Butterflies on HONA are pinning bets - traders use them when they expect HONA 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 HONA implied volatility affect this butterfly?: Current HONA ATM IV is 46.10%; IV rank context is unavailable in the current snapshot.