How are ITT 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 ITT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.90%), the computed maximum profit is $770.35 per contract and the computed maximum loss is -$200.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ITT butterfly?

The breakeven for the ITT butterfly priced on this page is roughly $212.00 and $228.00 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 ITT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ITT implied volatility affect this butterfly?

ITT ATM IV is at 28.90% with IV rank near 26.61%, 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.

ITT Butterfly Strategy

ITT (ITT Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.

ITT Inc., together with its subsidiaries, manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets. The company operates three segments: Motion Technologies, Industrial Process, and Connect & Control Technologies. The Motion Technologies segment manufactures brake pads, shock absorbers, energy absorption components, and damping technologies primarily for the transportation industry, including passenger cars, trucks, light and heavy-duty commercial and military vehicles, buses, and trains. This segment sells its products under the ITT Friction Technologies, KONI, Axtone, and Novitek brand names. The Industrial Process segment provides industrial pumps, valves, plant optimization, and remote monitoring systems and services; and aftermarket solutions, such as replacement parts and services. It serves various customers in the energy, chemical and petrochemical, pharmaceutical, general industrial, marine, mining, pulp and paper, food and beverage, power generation, and biopharmaceutical industries.

ITT (ITT Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $19.62B, a trailing P/E of 46.53, a beta of 1.28 versus the broader market, a 52-week range of 164-230.32, average daily share volume of 899K, a public-listing history dating back to 1995, approximately 12K full-time employees. These structural characteristics shape how ITT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.28 places ITT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 46.53 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. ITT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ITT?

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.

ITT snapshot

As of August 14, 2026, spot at $218.60, ATM IV 28.90%, IV rank 26.61%, expected move 8.29%. The butterfly on ITT 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 ITT specifically: ITT IV at 28.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a ITT butterfly, with a market-implied 1-standard-deviation move of approximately 8.29% (roughly $18.11 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 ITT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ITT should anchor to the underlying notional of $218.60 per share and to the trader's directional view on ITT stock.

ITT butterfly setup

The ITT 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 ITT at $218.60 on that close, the first option leg uses a $210.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ITT 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 ITT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$210.00	$13.15
Sell 2	Call	$220.00	$7.30
Buy 1	Call	$230.00	$3.45

ITT butterfly risk and reward

Net Premium / Debit: -$200.00
Max Profit (per contract): $770.35
Max Loss (per contract): -$200.00
Breakeven(s): $212.00, $228.00
Risk / Reward Ratio: 3.852

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.

ITT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ITT. 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%	-$200.00
$48.34	-77.9%	-$200.00
$96.68	-55.8%	-$200.00
$145.01	-33.7%	-$200.00
$193.34	-11.6%	-$200.00
$241.67	+10.6%	-$200.00
$290.01	+32.7%	-$200.00
$338.34	+54.8%	-$200.00
$386.67	+76.9%	-$200.00
$435.00	+99.0%	-$200.00

When traders use butterfly on ITT

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

ITT thesis for this butterfly

The market-implied 1-standard-deviation range for ITT extends from approximately $200.49 on the downside to $236.71 on the upside. A ITT long call butterfly is a pinning play: it pays maximum at the middle strike if ITT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ITT IV rank near 26.61% 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 ITT at 28.90%. As a Industrials name, ITT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ITT-specific events.

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

Frequently asked questions

What is a butterfly on ITT?: A butterfly on ITT is the butterfly strategy applied to ITT (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 ITT stock at $218.60 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ITT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ITT 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 ITT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.90%), the computed maximum profit is $770.35 per contract and the computed maximum loss is -$200.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ITT butterfly?: The breakeven for the ITT butterfly priced on this page is roughly $212.00 and $228.00 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 ITT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ITT?: Butterflies on ITT are pinning bets - traders use them when they expect ITT 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 ITT implied volatility affect this butterfly?: ITT ATM IV is at 28.90% with IV rank near 26.61%, 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.