How are IAG 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 IAG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 54.90%), the computed maximum profit is $84.96 per contract and the computed maximum loss is -$15.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IAG butterfly?

The breakeven for the IAG butterfly priced on this page is roughly $17.15 and $18.85 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 IAG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IAG implied volatility affect this butterfly?

IAG ATM IV is at 54.90% with IV rank near 39.50%, 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.

IAG Butterfly Strategy

IAG (Iamgold Corporation), in the Basic Materials sector, (Gold industry), listed on NYSE.

IAMGOLD Corp. engages in the exploration, development and production of gold and mineral resource properties. It owns and operates the Westwood mine in Quebec and the Cote Gold project, a development project located in Ontario. The firm also operates the Rosebel mine in Suriname, the Essakane mine in Burkina Faso, the Saramacca project, an exploration project located in Suriname, the Boto project, an exploration project located in Senegal. The company was founded by William D. Pugliese, Mark I. Nathanson, and Larry E.

IAG (Iamgold Corporation) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $10.58B, a trailing P/E of 9.15, a beta of 2.26 versus the broader market, a 52-week range of 7.9-24.87, average daily share volume of 6.0M, a public-listing history dating back to 2003, approximately 4K full-time employees. These structural characteristics shape how IAG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.26 indicates IAG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 9.15 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. IAG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on IAG?

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.

IAG snapshot

As of August 14, 2026, spot at $18.27, ATM IV 54.90%, IV rank 39.50%, expected move 15.74%. The butterfly on IAG 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 IAG specifically: IAG IV at 54.90% 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 15.74% (roughly $2.88 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 IAG expiries trade a higher absolute premium for lower per-day decay. Position sizing on IAG should anchor to the underlying notional of $18.27 per share and to the trader's directional view on IAG stock.

IAG butterfly setup

The IAG 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 IAG at $18.27 on that close, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IAG 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 IAG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$17.00	$2.03
Sell 2	Call	$18.00	$1.43
Buy 1	Call	$19.00	$0.98

IAG butterfly risk and reward

Net Premium / Debit: -$15.00
Max Profit (per contract): $84.96
Max Loss (per contract): -$15.00
Breakeven(s): $17.15, $18.85
Risk / Reward Ratio: 5.664

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.

IAG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on IAG. 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	-99.9%	-$15.00
$4.05	-77.8%	-$15.00
$8.09	-55.7%	-$15.00
$12.13	-33.6%	-$15.00
$16.16	-11.5%	-$15.00
$20.20	+10.6%	-$15.00
$24.24	+32.7%	-$15.00
$28.28	+54.8%	-$15.00
$32.32	+76.9%	-$15.00
$36.36	+99.0%	-$15.00

When traders use butterfly on IAG

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

IAG thesis for this butterfly

The market-implied 1-standard-deviation range for IAG extends from approximately $15.39 on the downside to $21.15 on the upside. A IAG long call butterfly is a pinning play: it pays maximum at the middle strike if IAG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IAG IV rank near 39.50% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on IAG should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, IAG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IAG-specific events.

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

Frequently asked questions

What is a butterfly on IAG?: A butterfly on IAG is the butterfly strategy applied to IAG (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 IAG stock at $18.27 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IAG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are IAG 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 IAG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 54.90%), the computed maximum profit is $84.96 per contract and the computed maximum loss is -$15.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IAG butterfly?: The breakeven for the IAG butterfly priced on this page is roughly $17.15 and $18.85 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 IAG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on IAG?: Butterflies on IAG are pinning bets - traders use them when they expect IAG 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 IAG implied volatility affect this butterfly?: IAG ATM IV is at 54.90% with IV rank near 39.50%, 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.