How are ISRG 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 ISRG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.63%), the computed maximum profit is $1,524.37 per contract and the computed maximum loss is -$405.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ISRG butterfly?

The breakeven for the ISRG butterfly priced on this page is roughly $379.05 and $410.95 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 ISRG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ISRG implied volatility affect this butterfly?

ISRG ATM IV is at 30.63% with IV rank near 26.09%, 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.

ISRG Butterfly Strategy

ISRG (Intuitive Surgical, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.

Intuitive Surgical, Inc. is a leading medical technology firm dedicated to advancing patient care by developing, producing, and commercializing sophisticated tools. These innovations empower medical professionals to deliver superior, accessible, and less-invasive treatment options to patients both within the United States and across international markets. Its flagship offering, the da Vinci Surgical System, facilitates intricate operations through a minimally disruptive approach. Expanding beyond surgical applications, the company also provides the Ion endoluminal system, designed for diagnostic interventions like minimally invasive lung biopsies. Complementing its primary systems, Intuitive Surgical supplies a comprehensive array of instruments, including stapling tools, energy devices, and essential core components. Furthermore, it offers structured training programs to ensure proficient use of its technology, alongside extensive customer support services encompassing installation, repairs, and ongoing maintenance.

ISRG (Intuitive Surgical, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $141.76B, a trailing P/E of 45.32, a beta of 1.46 versus the broader market, a 52-week range of 328.57-603.88, average daily share volume of 2.8M, a public-listing history dating back to 2000, approximately 17K full-time employees. These structural characteristics shape how ISRG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.46 indicates ISRG 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 45.32 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 ISRG?

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.

ISRG snapshot

As of August 14, 2026, spot at $396.28, ATM IV 30.63%, IV rank 26.09%, expected move 8.78%. The butterfly on ISRG 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 ISRG specifically: ISRG IV at 30.63% is on the cheap side of its 1-year range, which favors premium-buying structures like a ISRG butterfly, with a market-implied 1-standard-deviation move of approximately 8.78% (roughly $34.80 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 ISRG expiries trade a higher absolute premium for lower per-day decay. Position sizing on ISRG should anchor to the underlying notional of $396.28 per share and to the trader's directional view on ISRG stock.

ISRG butterfly setup

The ISRG 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 ISRG at $396.28 on that close, the first option leg uses a $375.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ISRG 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 ISRG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$375.00	$28.45
Sell 2	Call	$395.00	$15.40
Buy 1	Call	$415.00	$6.40

ISRG butterfly risk and reward

Net Premium / Debit: -$405.00
Max Profit (per contract): $1,524.37
Max Loss (per contract): -$405.00
Breakeven(s): $379.05, $410.95
Risk / Reward Ratio: 3.764

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.

ISRG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ISRG. 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%	-$405.00
$87.63	-77.9%	-$405.00
$175.25	-55.8%	-$405.00
$262.87	-33.7%	-$405.00
$350.48	-11.6%	-$405.00
$438.10	+10.6%	-$405.00
$525.72	+32.7%	-$405.00
$613.34	+54.8%	-$405.00
$700.96	+76.9%	-$405.00
$788.58	+99.0%	-$405.00

When traders use butterfly on ISRG

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

ISRG thesis for this butterfly

The market-implied 1-standard-deviation range for ISRG extends from approximately $361.48 on the downside to $431.08 on the upside. A ISRG long call butterfly is a pinning play: it pays maximum at the middle strike if ISRG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ISRG IV rank near 26.09% 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 ISRG at 30.63%. As a Healthcare name, ISRG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ISRG-specific events.

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

Frequently asked questions

What is a butterfly on ISRG?: A butterfly on ISRG is the butterfly strategy applied to ISRG (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 ISRG stock at $396.28 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ISRG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ISRG 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 ISRG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.63%), the computed maximum profit is $1,524.37 per contract and the computed maximum loss is -$405.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ISRG butterfly?: The breakeven for the ISRG butterfly priced on this page is roughly $379.05 and $410.95 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 ISRG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ISRG?: Butterflies on ISRG are pinning bets - traders use them when they expect ISRG 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 ISRG implied volatility affect this butterfly?: ISRG ATM IV is at 30.63% with IV rank near 26.09%, 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.