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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.60%), the computed maximum profit is $285.23 per contract and the computed maximum loss is -$202.50 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 $97.03 and $102.98 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 ITRI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.35%; 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 32.60% with IV rank near 13.56%, 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.

ITRI Butterfly Strategy

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

Itron, Inc., a technology, solutions, and service company, provides end-to-end solutions that help manage energy, water, and smart city operations worldwide. It operates in four segments: Device Solutions, Networked Solutions, Outcomes, and Resiliency Solution. The Device Solutions segment offers hardware products that are used for measurement, control, or sensing, such as standard gas, electricity, water, and communicating meters, as well as heat and allocation products. The Networked Solutions segment provides communicating devices, such as smart meters, modules, endpoints, and sensors; network infrastructure; network design services; and associated heat-end management and application software for acquiring and transporting application-specific data. This segment also products and software for the implementation, installation, and management of communicating devices and data networks; offers industrial internet of things solutions, including automated meter reading; advanced metering infrastructure for electricity, water, and gas; distributed energy resource management; grid edge devices; distribution automation communications; smart lighting; and smart city sensors and applications. The Outcomes segment provides value-added, enhanced software and services, artificial intelligence, and machine learning, statistical modeling, and other analytics.

ITRI (Itron, Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $4.49B, a trailing P/E of 16.63, a beta of 1.33 versus the broader market, a 52-week range of 77.77-142, average daily share volume of 847K, 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 1.33 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.

ITRI snapshot

As of August 14, 2026, spot at $101.65, ATM IV 32.60%, IV rank 13.56%, expected move 9.35%. The butterfly on ITRI 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 ITRI specifically: ITRI IV at 32.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a ITRI butterfly, with a market-implied 1-standard-deviation move of approximately 9.35% (roughly $9.50 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 ITRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on ITRI should anchor to the underlying notional of $101.65 per share and to the trader's directional view on ITRI stock.

ITRI butterfly setup

The ITRI 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 ITRI at $101.65 on that close, the first option leg uses a $95.00 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 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 ITRI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$95.00	$9.50
Sell 2	Call	$100.00	$5.10
Buy 1	Call	$105.00	$2.73

ITRI butterfly risk and reward

Net Premium / Debit: -$202.50
Max Profit (per contract): $285.23
Max Loss (per contract): -$202.50
Breakeven(s): $97.03, $102.98
Risk / Reward Ratio: 1.409

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.

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%	-$202.50
$22.48	-77.9%	-$202.50
$44.96	-55.8%	-$202.50
$67.43	-33.7%	-$202.50
$89.91	-11.6%	-$202.50
$112.38	+10.6%	-$202.50
$134.86	+32.7%	-$202.50
$157.33	+54.8%	-$202.50
$179.80	+76.9%	-$202.50
$202.28	+99.0%	-$202.50

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 $92.15 on the downside to $111.15 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 13.56% 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 ITRI at 32.60%. 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 at $101.65 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ITRI chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.60%), the computed maximum profit is $285.23 per contract and the computed maximum loss is -$202.50 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 $97.03 and $102.98 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 ITRI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on 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 32.60% with IV rank near 13.56%, 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.