How are JJSF 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 JJSF butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 35.90%), the computed maximum profit is $255.00 per contract and the computed maximum loss is -$245.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a JJSF butterfly?

The breakeven for the JJSF butterfly priced on this page is roughly $72.55 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 JJSF market-implied 1-standard-deviation expected move is approximately 10.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current JJSF implied volatility affect this butterfly?

JJSF ATM IV is at 35.90% with IV rank near 4.77%, 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.

JJSF Butterfly Strategy

JJSF (J&J Snack Foods Corp.), in the Consumer Defensive sector, (Packaged Foods industry), listed on NASDAQ.

J&J Snack Foods Corp. manufactures, markets, and distributes nutritional snack foods and beverages to the food service and retail supermarket industries in the United States, Mexico, and Canada. It operates in three segments: Food Service, Retail Supermarkets, and Frozen Beverages. The company offers soft pretzels under the SUPERPRETZEL, PRETZEL FILLERS, PRETZELFILS, GOURMET TWISTS, MR. TWISTER, SOFT PRETZEL BITES, SOFTSTIX, SOFT PRETZEL BUNS, TEXAS TWIST, BAVARIAN BAKERY, SUPERPRETZEL BAVARIAN, NEW YORK PRETZEL, KIM & SCOTT'S GOURMET PRETZELS, SERIOUSLY TWISTED!, BRAUHAUS, AUNTIE ANNE'S, and LABRIOLA, as well as under the private labels. It also provides frozen novelty under the LUIGI'S, WHOLE FRUIT, PHILLY SWIRL, SOUR PATCH, ICEE, and MINUTE MAID brands; churros under the TIO PEPE'S and CALIFORNIA CHURROS brands; and handheld products under the SUPREME STUFFERS and SWEET STUFFERS brands. In addition, the company offers bakery products, including biscuits, fig and fruit bars, cookies, breads, rolls, crumbs, muffins, and donuts under the MRS.

JJSF (J&J Snack Foods Corp.) trades in the Consumer Defensive sector, specifically Packaged Foods, with a market capitalization of approximately $1.34B, a trailing P/E of 23.26, a beta of 0.44 versus the broader market, a 52-week range of 68.87-129.24, average daily share volume of 266K, a public-listing history dating back to 1986, approximately 5K full-time employees. These structural characteristics shape how JJSF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.44 indicates JJSF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. JJSF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on JJSF?

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 JJSF snapshot

As of May 15, 2026, spot at $71.63, ATM IV 35.90%, IV rank 4.77%, expected move 10.29%. The butterfly on JJSF 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 98-day expiry.

Why this butterfly structure on JJSF specifically: JJSF IV at 35.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a JJSF butterfly, with a market-implied 1-standard-deviation move of approximately 10.29% (roughly $7.37 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated JJSF expiries trade a higher absolute premium for lower per-day decay. Position sizing on JJSF should anchor to the underlying notional of $71.63 per share and to the trader's directional view on JJSF stock.

JJSF butterfly setup

The JJSF 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 JJSF near $71.63, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JJSF chain at a 98-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 JJSF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$70.00	$6.00
Sell 2	Call	$70.00	$6.00
Buy 1	Call	$75.00	$3.45

JJSF butterfly risk and reward

Net Premium / Debit: +$255.00
Max Profit (per contract): $255.00
Max Loss (per contract): -$245.00
Breakeven(s): $72.55
Risk / Reward Ratio: 1.041

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.

JJSF butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on JJSF. 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%	+$255.00
$15.85	-77.9%	+$255.00
$31.68	-55.8%	+$255.00
$47.52	-33.7%	+$255.00
$63.36	-11.6%	+$255.00
$79.19	+10.6%	-$245.00
$95.03	+32.7%	-$245.00
$110.87	+54.8%	-$245.00
$126.70	+76.9%	-$245.00
$142.54	+99.0%	-$245.00

When traders use butterfly on JJSF

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

JJSF thesis for this butterfly

The market-implied 1-standard-deviation range for JJSF extends from approximately $64.26 on the downside to $79.00 on the upside. A JJSF long call butterfly is a pinning play: it pays maximum at the middle strike if JJSF settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current JJSF IV rank near 4.77% 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 JJSF at 35.90%. As a Consumer Defensive name, JJSF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JJSF-specific events.

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

Frequently asked questions

What is a butterfly on JJSF?: A butterfly on JJSF is the butterfly strategy applied to JJSF (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 JJSF stock trading near $71.63, the strikes shown on this page are snapped to the nearest listed JJSF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are JJSF 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 JJSF butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 35.90%), the computed maximum profit is $255.00 per contract and the computed maximum loss is -$245.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a JJSF butterfly?: The breakeven for the JJSF butterfly priced on this page is roughly $72.55 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 JJSF market-implied 1-standard-deviation expected move is approximately 10.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on JJSF?: Butterflies on JJSF are pinning bets - traders use them when they expect JJSF 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 JJSF implied volatility affect this butterfly?: JJSF ATM IV is at 35.90% with IV rank near 4.77%, 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.