How are JAZZ 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 JAZZ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 34.60%), the computed maximum profit is $779.05 per contract and the computed maximum loss is -$130.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a JAZZ butterfly?

The breakeven for the JAZZ butterfly priced on this page is roughly $221.16 and $238.76 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 JAZZ market-implied 1-standard-deviation expected move is approximately 9.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current JAZZ implied volatility affect this butterfly?

JAZZ ATM IV is at 34.60% with IV rank near 15.45%, 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.

JAZZ Butterfly Strategy

JAZZ (Jazz Pharmaceuticals plc), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Jazz Pharmaceuticals plc identifies, develops, and commercializes pharmaceutical products in the United States, Europe, and internationally. The company offers Xywav to treat cataplexy or excessive daytime sleepiness (EDS) with narcolepsy and idiopathic hypersomnia (IH); Epidiolex for seizures associated with Lennox-Gastaut syndrome (LGS), Dravet syndrome (DS), or tuberous sclerosis complex (TSC); Rylaze for the treatment of acute lymphoblastic leukemia or lymphoblastic lymphoma; Enrylaze to treat acute lymphoblastic leukemia and lymphoblastic lymphoma; Zepzelca for the treatment of metastatic small cell lung cancer with disease progression on or after platinum-based chemotherapy; Ziihera to treat HER2-positive biliary tract cancers; Modeyso for the treatment of diffuse midline glioma harboring an H3 K27M mutation; and Defitelio to treat severe veno-occlusive disease. It also develops Zanidatamab in Phase 3 trial to treat HER2-positive gastroesophageal adenocarcinoma (GEA) and biliary tract cancers (BTC); Dordaviprone to treat H3 K27M-mutant diffuse glioma; and Vyxeos for the treatment of newly-diagnosed therapy-related acute myeloid leukemia. In addition, the company is developing Zanidatamab to treat neoadjuvant and adjuvant breast cancer; Vyxeos for the treatment of High-risk MDS, newly diagnosed untreated patients with high-risk AML, and De novo intermediate or adverse risk AML stratified by genomics; and JZP3507 to treat pheochromocytoma and paraganglioma that are in Phase 2 clinical trials. Further, it develops JZP815 to treat Raf and Ras mutant tumors; JZP898 for the IFN INDUKIN molecule in solid tumors; and JZP047 to treat absence epilepsy that are in Phase 1 clinical trials. The company has licensing and collaboration agreements with Redx Pharma plc, Autifony Therapeutics Limited, Zymeworks Inc., Sumitomo Pharma Co., Ltd., and Werewolf Therapeutics, Inc.

JAZZ (Jazz Pharmaceuticals plc) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $14.45B, a trailing P/E of 482.77, a beta of 0.33 versus the broader market, a 52-week range of 105-243.32, average daily share volume of 934K, a public-listing history dating back to 2007, approximately 3K full-time employees. These structural characteristics shape how JAZZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.33 indicates JAZZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 482.77 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 JAZZ?

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 JAZZ snapshot

As of June 26, 2026, spot at $229.75, ATM IV 34.60%, IV rank 15.45%, expected move 9.92%. The butterfly on JAZZ 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 18-day expiry.

Why this butterfly structure on JAZZ specifically: JAZZ IV at 34.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a JAZZ butterfly, with a market-implied 1-standard-deviation move of approximately 9.92% (roughly $22.79 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated JAZZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on JAZZ should anchor to the underlying notional of $229.75 per share and to the trader's directional view on JAZZ stock.

JAZZ butterfly setup

The JAZZ 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 JAZZ near $229.75, the first option leg uses a $220.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JAZZ chain at a 18-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 JAZZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$220.00	$19.25
Sell 2	Call	$230.00	$11.95
Buy 1	Call	$240.00	$5.95

JAZZ butterfly risk and reward

Net Premium / Debit: -$130.00
Max Profit (per contract): $779.05
Max Loss (per contract): -$130.00
Breakeven(s): $221.16, $238.76
Risk / Reward Ratio: 5.993

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.

JAZZ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on JAZZ. 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%	-$130.00
$50.81	-77.9%	-$130.00
$101.61	-55.8%	-$130.00
$152.40	-33.7%	-$130.00
$203.20	-11.6%	-$130.00
$254.00	+10.6%	-$130.00
$304.80	+32.7%	-$130.00
$355.60	+54.8%	-$130.00
$406.39	+76.9%	-$130.00
$457.19	+99.0%	-$130.00

When traders use butterfly on JAZZ

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

JAZZ thesis for this butterfly

The market-implied 1-standard-deviation range for JAZZ extends from approximately $206.96 on the downside to $252.54 on the upside. A JAZZ long call butterfly is a pinning play: it pays maximum at the middle strike if JAZZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current JAZZ IV rank near 15.45% 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 JAZZ at 34.60%. As a Healthcare name, JAZZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JAZZ-specific events.

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

Frequently asked questions

What is a butterfly on JAZZ?: A butterfly on JAZZ is the butterfly strategy applied to JAZZ (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 JAZZ stock trading near $229.75, the strikes shown on this page are snapped to the nearest listed JAZZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are JAZZ 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 JAZZ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 34.60%), the computed maximum profit is $779.05 per contract and the computed maximum loss is -$130.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a JAZZ butterfly?: The breakeven for the JAZZ butterfly priced on this page is roughly $221.16 and $238.76 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 JAZZ market-implied 1-standard-deviation expected move is approximately 9.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on JAZZ?: Butterflies on JAZZ are pinning bets - traders use them when they expect JAZZ 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 JAZZ implied volatility affect this butterfly?: JAZZ ATM IV is at 34.60% with IV rank near 15.45%, 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.