How are HUT 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 HUT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 92.33%), the computed maximum profit is $329.64 per contract and the computed maximum loss is -$157.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HUT butterfly?

The breakeven for the HUT butterfly priced on this page is roughly $82.58 and $89.43 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 HUT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HUT implied volatility affect this butterfly?

HUT ATM IV is at 92.33% with IV rank near 26.66%, 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.

HUT Butterfly Strategy

HUT (Hut 8 Corp.), in the Financial Services sector, (Financial - Capital Markets industry), listed on NASDAQ.

Hut 8 Corp., together with its subsidiaries, operates as an energy infrastructure platform that integrates power, digital infrastructure, and compute at scale to fuel energy-intensive use cases in the United States and Canada. It operates through Power, Digital Infrastructure, Compute, and Other segments. The company offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services. It also engages in the operation of compute infrastructure; and provision, hosting, monitoring, troubleshooting, repair, maintenance, and sale of mining equipment. In addition, the company offers Bitcoin mining; data center and cloud infrastructure services, including colocation services; and ASIC compute, traditional cloud, and AI cloud services. Hut 8 Corp. was founded in 2020 and is based in Miami, Florida.

HUT (Hut 8 Corp.) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $10.22B, a beta of 6.11 versus the broader market, a 52-week range of 20.69-140.8, average daily share volume of 4.7M, a public-listing history dating back to 2018, approximately 248 full-time employees. These structural characteristics shape how HUT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 6.11 indicates HUT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on HUT?

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.

HUT snapshot

As of August 14, 2026, spot at $86.30, ATM IV 92.33%, IV rank 26.66%, expected move 26.47%. The butterfly on HUT 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 28-day expiry.

Why this butterfly structure on HUT specifically: HUT IV at 92.33% is on the cheap side of its 1-year range, which favors premium-buying structures like a HUT butterfly, with a market-implied 1-standard-deviation move of approximately 26.47% (roughly $22.84 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HUT expiries trade a higher absolute premium for lower per-day decay. Position sizing on HUT should anchor to the underlying notional of $86.30 per share and to the trader's directional view on HUT stock.

HUT butterfly setup

The HUT 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 HUT at $86.30 on that close, the first option leg uses a $82.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HUT chain at a 28-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 HUT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$82.00	$11.28
Sell 2	Call	$86.00	$8.78
Buy 1	Call	$91.00	$6.85

HUT butterfly risk and reward

Net Premium / Debit: -$57.50
Max Profit (per contract): $329.64
Max Loss (per contract): -$157.50
Breakeven(s): $82.58, $89.43
Risk / Reward Ratio: 2.093

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.

HUT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on HUT. 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%	-$57.50
$19.09	-77.9%	-$57.50
$38.17	-55.8%	-$57.50
$57.25	-33.7%	-$57.50
$76.33	-11.6%	-$57.50
$95.41	+10.6%	-$157.50
$114.49	+32.7%	-$157.50
$133.57	+54.8%	-$157.50
$152.65	+76.9%	-$157.50
$171.73	+99.0%	-$157.50

When traders use butterfly on HUT

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

HUT thesis for this butterfly

The market-implied 1-standard-deviation range for HUT extends from approximately $63.46 on the downside to $109.14 on the upside. A HUT long call butterfly is a pinning play: it pays maximum at the middle strike if HUT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HUT IV rank near 26.66% 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 HUT at 92.33%. As a Financial Services name, HUT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HUT-specific events.

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

Frequently asked questions

What is a butterfly on HUT?: A butterfly on HUT is the butterfly strategy applied to HUT (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 HUT stock at $86.30 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HUT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are HUT 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 HUT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 92.33%), the computed maximum profit is $329.64 per contract and the computed maximum loss is -$157.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HUT butterfly?: The breakeven for the HUT butterfly priced on this page is roughly $82.58 and $89.43 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 HUT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on HUT?: Butterflies on HUT are pinning bets - traders use them when they expect HUT 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 HUT implied volatility affect this butterfly?: HUT ATM IV is at 92.33% with IV rank near 26.66%, 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.