How are INOD 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 INOD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 98.90%), the computed maximum profit is $366.66 per contract and the computed maximum loss is -$25.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a INOD butterfly?

The breakeven for the INOD butterfly priced on this page is roughly $73.25 and $80.75 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 INOD market-implied 1-standard-deviation expected move is approximately 28.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current INOD implied volatility affect this butterfly?

INOD ATM IV is at 98.90% with IV rank near 45.14%, 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.

INOD Butterfly Strategy

INOD (Innodata Inc.), in the Technology sector, (Information Technology Services industry), listed on NASDAQ.

Innodata Inc. is a global enterprise specializing in data engineering, with operations spanning the United States, the United Kingdom, the Netherlands, Canada, and other international locations. The firm conducts its business across three distinct divisions: Digital Data Solutions (DDS), Synodex, and Agility. Its Digital Data Solutions (DDS) division furnishes clients with AI-powered software platforms and outsourced services. These offerings cater to businesses needing data for the instruction of artificial intelligence (AI) and machine learning (ML) algorithms. DDS also delivers AI-driven digital transformation strategies, assisting organizations in leveraging AI/ML to extract critical insights from textual information. Furthermore, DDS provides a comprehensive suite of data engineering support functions, encompassing activities such as data annotation, transformation, curation, hygiene, consolidation, compliance, and master data management.

INOD (Innodata Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $2.41B, a trailing P/E of 61.36, a beta of 2.84 versus the broader market, a 52-week range of 34.23-125.14, average daily share volume of 1.9M, a public-listing history dating back to 1993, approximately 7K full-time employees. These structural characteristics shape how INOD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.84 indicates INOD 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 61.36 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 INOD?

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 INOD snapshot

As of June 29, 2026, spot at $77.30, ATM IV 98.90%, IV rank 45.14%, expected move 28.35%. The butterfly on INOD 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 32-day expiry.

Why this butterfly structure on INOD specifically: INOD IV at 98.90% 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 28.35% (roughly $21.92 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated INOD expiries trade a higher absolute premium for lower per-day decay. Position sizing on INOD should anchor to the underlying notional of $77.30 per share and to the trader's directional view on INOD stock.

INOD butterfly setup

The INOD 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 INOD near $77.30, the first option leg uses a $73.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INOD chain at a 32-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 INOD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$73.00	$11.35
Sell 2	Call	$77.00	$9.25
Buy 1	Call	$81.00	$7.40

INOD butterfly risk and reward

Net Premium / Debit: -$25.00
Max Profit (per contract): $366.66
Max Loss (per contract): -$25.00
Breakeven(s): $73.25, $80.75
Risk / Reward Ratio: 14.666

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.

INOD butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on INOD. 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%	-$25.00
$17.10	-77.9%	-$25.00
$34.19	-55.8%	-$25.00
$51.28	-33.7%	-$25.00
$68.37	-11.6%	-$25.00
$85.46	+10.6%	-$25.00
$102.55	+32.7%	-$25.00
$119.64	+54.8%	-$25.00
$136.73	+76.9%	-$25.00
$153.82	+99.0%	-$25.00

When traders use butterfly on INOD

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

INOD thesis for this butterfly

The market-implied 1-standard-deviation range for INOD extends from approximately $55.38 on the downside to $99.22 on the upside. A INOD long call butterfly is a pinning play: it pays maximum at the middle strike if INOD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current INOD IV rank near 45.14% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on INOD should anchor more to the directional view and the expected-move geometry. As a Technology name, INOD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INOD-specific events.

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

Frequently asked questions

What is a butterfly on INOD?: A butterfly on INOD is the butterfly strategy applied to INOD (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 INOD stock trading near $77.30, the strikes shown on this page are snapped to the nearest listed INOD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are INOD 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 INOD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 98.90%), the computed maximum profit is $366.66 per contract and the computed maximum loss is -$25.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a INOD butterfly?: The breakeven for the INOD butterfly priced on this page is roughly $73.25 and $80.75 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 INOD market-implied 1-standard-deviation expected move is approximately 28.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on INOD?: Butterflies on INOD are pinning bets - traders use them when they expect INOD 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 INOD implied volatility affect this butterfly?: INOD ATM IV is at 98.90% with IV rank near 45.14%, 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.