How are ITRI 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 ITRI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 41.80%), the computed maximum profit is $396.33 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ITRI butterfly?

The breakeven for the ITRI butterfly priced on this page is roughly $75.70 and $84.30 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 ITRI market-implied 1-standard-deviation expected move is approximately 11.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ITRI implied volatility affect this butterfly?

ITRI ATM IV is at 41.80% with IV rank near 30.12%, 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.

ITRI Butterfly Strategy

ITRI (Itron, Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.

Itron, Inc., a technology and service company, provides end-to-end solutions that help manage operations in the energy, water, and smart city space worldwide. The company operates through three segments: Device Solutions, Networked Solutions, and Outcomes. The Device Solutions segment offers hardware products that are used for measurement, control, or sensing. The Networked Solutions segment provides a combination of communicating devices, such as smart meters, modules, endpoints, and sensors; network infrastructure; and associated application software for acquiring and transporting application-specific data. The Outcomes segment offers value-added, enhanced software and services for managing, organizing, analyzing, and interpreting data to enhance decision making, maximize operational profitability, drive resource efficiency, and deliver results for consumers, utilities, and smart cities. In addition, it offers implementation, project management, installation, consulting, and post-sale maintenance support services, as well as cloud and software-as-a-service; and extended or customer-specific warranties.

ITRI (Itron, Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $3.65B, a trailing P/E of 12.73, a beta of 1.35 versus the broader market, a 52-week range of 78.53-142, average daily share volume of 1.1M, a public-listing history dating back to 1993, approximately 5K full-time employees. These structural characteristics shape how ITRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.35 indicates ITRI 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 ITRI?

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 ITRI snapshot

As of May 15, 2026, spot at $79.26, ATM IV 41.80%, IV rank 30.12%, expected move 11.98%. The butterfly on ITRI 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 63-day expiry.

Why this butterfly structure on ITRI specifically: ITRI IV at 41.80% 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 11.98% (roughly $9.50 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ITRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on ITRI should anchor to the underlying notional of $79.26 per share and to the trader's directional view on ITRI stock.

ITRI butterfly setup

The ITRI 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 ITRI near $79.26, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ITRI chain at a 63-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 ITRI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$75.00	$9.25
Sell 2	Call	$80.00	$6.25
Buy 1	Call	$85.00	$3.95

ITRI butterfly risk and reward

Net Premium / Debit: -$70.00
Max Profit (per contract): $396.33
Max Loss (per contract): -$70.00
Breakeven(s): $75.70, $84.30
Risk / Reward Ratio: 5.662

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.

ITRI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ITRI. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$70.00
$17.53	-77.9%	-$70.00
$35.06	-55.8%	-$70.00
$52.58	-33.7%	-$70.00
$70.10	-11.6%	-$70.00
$87.63	+10.6%	-$70.00
$105.15	+32.7%	-$70.00
$122.68	+54.8%	-$70.00
$140.20	+76.9%	-$70.00
$157.72	+99.0%	-$70.00

When traders use butterfly on ITRI

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

ITRI thesis for this butterfly

The market-implied 1-standard-deviation range for ITRI extends from approximately $69.76 on the downside to $88.76 on the upside. A ITRI long call butterfly is a pinning play: it pays maximum at the middle strike if ITRI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ITRI IV rank near 30.12% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ITRI should anchor more to the directional view and the expected-move geometry. As a Technology name, ITRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ITRI-specific events.

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

Frequently asked questions

What is a butterfly on ITRI?: A butterfly on ITRI is the butterfly strategy applied to ITRI (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 ITRI stock trading near $79.26, the strikes shown on this page are snapped to the nearest listed ITRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ITRI 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 ITRI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 41.80%), the computed maximum profit is $396.33 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ITRI butterfly?: The breakeven for the ITRI butterfly priced on this page is roughly $75.70 and $84.30 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 ITRI market-implied 1-standard-deviation expected move is approximately 11.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ITRI?: Butterflies on ITRI are pinning bets - traders use them when they expect ITRI 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 ITRI implied volatility affect this butterfly?: ITRI ATM IV is at 41.80% with IV rank near 30.12%, 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.