How are JKHY 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 JKHY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 27.20%), the computed maximum profit is $560.65 per contract and the computed maximum loss is -$437.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a JKHY butterfly?

The breakeven for the JKHY butterfly priced on this page is roughly $140.63 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 JKHY market-implied 1-standard-deviation expected move is approximately 7.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current JKHY implied volatility affect this butterfly?

JKHY ATM IV is at 27.20% with IV rank near 46.84%, 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.

JKHY Butterfly Strategy

JKHY (Jack Henry & Associates, Inc.), in the Technology sector, (Information Technology Services industry), listed on NASDAQ.

Jack Henry & Associates, Inc. provides technology solutions and payment processing services primarily for financial services organizations in the United States. It operates through four segments: Core, Payments, Complementary, and Corporate and Other. The company offers information and transaction processing solutions for banks ranging from community to multi-billion-dollar asset institutions under the Jack Henry Banking brand; core data processing solutions for various credit unions under the Symitar brand; and specialized financial performance, imaging and payments processing, information security and risk management, retail delivery, and online and mobile solutions to financial institutions and corporate entities under the ProfitStars brand. It also provides a suite of integrated applications required to process deposit, loan, and general ledger transactions, as well as to maintain centralized customer/member information; and complementary products and services that enable core bank and credit union clients to respond to evolving customer/member demands. The company's Jack Henry Banking business brand offers SilverLake, a robust primarily designed for commercial-focused banks; CIF 20/20, a parameter-driven, easy-to-use system for banks; and Core Director, a cost-efficient system with point-and-click operation. Its Symitar business brand provides Episys, a robust designed for credit unions.

JKHY (Jack Henry & Associates, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $10.05B, a trailing P/E of 19.61, a beta of 0.63 versus the broader market, a 52-week range of 139-193.39, average daily share volume of 992K, a public-listing history dating back to 1985, approximately 7K full-time employees. These structural characteristics shape how JKHY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.63 indicates JKHY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. JKHY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on JKHY?

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 JKHY snapshot

As of May 15, 2026, spot at $137.08, ATM IV 27.20%, IV rank 46.84%, expected move 7.80%. The butterfly on JKHY 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 34-day expiry.

Why this butterfly structure on JKHY specifically: JKHY IV at 27.20% 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 7.80% (roughly $10.69 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated JKHY expiries trade a higher absolute premium for lower per-day decay. Position sizing on JKHY should anchor to the underlying notional of $137.08 per share and to the trader's directional view on JKHY stock.

JKHY butterfly setup

The JKHY 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 JKHY near $137.08, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JKHY chain at a 34-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 JKHY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$130.00	$8.90
Sell 2	Call	$135.00	$5.60
Buy 1	Call	$145.00	$1.68

JKHY butterfly risk and reward

Net Premium / Debit: +$62.50
Max Profit (per contract): $560.65
Max Loss (per contract): -$437.50
Breakeven(s): $140.63
Risk / Reward Ratio: 1.281

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.

JKHY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on JKHY. 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%	+$62.50
$30.32	-77.9%	+$62.50
$60.63	-55.8%	+$62.50
$90.93	-33.7%	+$62.50
$121.24	-11.6%	+$62.50
$151.55	+10.6%	-$437.50
$181.86	+32.7%	-$437.50
$212.17	+54.8%	-$437.50
$242.47	+76.9%	-$437.50
$272.78	+99.0%	-$437.50

When traders use butterfly on JKHY

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

JKHY thesis for this butterfly

The market-implied 1-standard-deviation range for JKHY extends from approximately $126.39 on the downside to $147.77 on the upside. A JKHY long call butterfly is a pinning play: it pays maximum at the middle strike if JKHY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current JKHY IV rank near 46.84% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on JKHY should anchor more to the directional view and the expected-move geometry. As a Technology name, JKHY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JKHY-specific events.

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

Frequently asked questions

What is a butterfly on JKHY?: A butterfly on JKHY is the butterfly strategy applied to JKHY (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 JKHY stock trading near $137.08, the strikes shown on this page are snapped to the nearest listed JKHY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are JKHY 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 JKHY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 27.20%), the computed maximum profit is $560.65 per contract and the computed maximum loss is -$437.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a JKHY butterfly?: The breakeven for the JKHY butterfly priced on this page is roughly $140.63 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 JKHY market-implied 1-standard-deviation expected move is approximately 7.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on JKHY?: Butterflies on JKHY are pinning bets - traders use them when they expect JKHY 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 JKHY implied volatility affect this butterfly?: JKHY ATM IV is at 27.20% with IV rank near 46.84%, 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.