How are IRM 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 IRM butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 29.13%), the computed maximum profit is $493.91 per contract and the computed maximum loss is -$187.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IRM butterfly?

The breakeven for the IRM butterfly priced on this page is roughly $124.88 and $135.13 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 IRM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IRM implied volatility affect this butterfly?

IRM ATM IV is at 29.13% with IV rank near 25.33%, 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.

IRM Butterfly Strategy

IRM (Iron Mountain Incorporated), in the Real Estate sector, (REIT - Specialty industry), listed on NYSE.

Established in 1951, Iron Mountain Incorporated (NYSE: IRM) has become the world's foremost authority in storage and information management solutions. More than 225,000 organizations globally trust Iron Mountain with their critical assets. With an extensive physical infrastructure spanning over 90 million square feet, the company operates approximately 1,450 facilities in around 50 countries. Within this vast network, Iron Mountain safeguards billions of valued items, including vital corporate records, highly confidential digital assets, and invaluable cultural and historical artifacts. Their comprehensive suite of offerings encompasses secure document archiving, robust information governance, digital transformation initiatives, confidential destruction services, along with advanced data centers, cloud computing solutions, and specialized art storage and logistics. These services empower clients to mitigate costs and risks, ensure regulatory compliance, facilitate swift disaster recovery, and enable a more efficient, digital-first operational model.

IRM (Iron Mountain Incorporated) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $37.00B, a trailing P/E of 88.44, a beta of 1.22 versus the broader market, a 52-week range of 77.77-134.68, average daily share volume of 1.7M, a public-listing history dating back to 1996, approximately 29K full-time employees. These structural characteristics shape how IRM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.22 places IRM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 88.44 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. IRM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on IRM?

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.

IRM snapshot

As of August 14, 2026, spot at $129.53, ATM IV 29.13%, IV rank 25.33%, expected move 8.35%. The butterfly on IRM 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 IRM specifically: IRM IV at 29.13% is on the cheap side of its 1-year range, which favors premium-buying structures like a IRM butterfly, with a market-implied 1-standard-deviation move of approximately 8.35% (roughly $10.82 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 IRM expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRM should anchor to the underlying notional of $129.53 per share and to the trader's directional view on IRM stock.

IRM butterfly setup

The IRM 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 IRM at $129.53 on that close, the first option leg uses a $123.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRM 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 IRM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$123.00	$8.25
Sell 2	Call	$130.00	$3.85
Buy 1	Call	$136.00	$1.33

IRM butterfly risk and reward

Net Premium / Debit: -$187.50
Max Profit (per contract): $493.91
Max Loss (per contract): -$187.50
Breakeven(s): $124.88, $135.13
Risk / Reward Ratio: 2.634

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.

IRM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on IRM. 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%	-$187.50
$28.65	-77.9%	-$187.50
$57.29	-55.8%	-$187.50
$85.93	-33.7%	-$187.50
$114.56	-11.6%	-$187.50
$143.20	+10.6%	-$87.50
$171.84	+32.7%	-$87.50
$200.48	+54.8%	-$87.50
$229.12	+76.9%	-$87.50
$257.76	+99.0%	-$87.50

When traders use butterfly on IRM

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

IRM thesis for this butterfly

The market-implied 1-standard-deviation range for IRM extends from approximately $118.71 on the downside to $140.35 on the upside. A IRM long call butterfly is a pinning play: it pays maximum at the middle strike if IRM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IRM IV rank near 25.33% 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 IRM at 29.13%. As a Real Estate name, IRM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRM-specific events.

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

Frequently asked questions

What is a butterfly on IRM?: A butterfly on IRM is the butterfly strategy applied to IRM (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 IRM stock at $129.53 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IRM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are IRM 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 IRM butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 29.13%), the computed maximum profit is $493.91 per contract and the computed maximum loss is -$187.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IRM butterfly?: The breakeven for the IRM butterfly priced on this page is roughly $124.88 and $135.13 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 IRM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on IRM?: Butterflies on IRM are pinning bets - traders use them when they expect IRM 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 IRM implied volatility affect this butterfly?: IRM ATM IV is at 29.13% with IV rank near 25.33%, 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.