How are KBR 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 KBR butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.30%), the computed maximum profit is $127.50 per contract and the computed maximum loss is -$122.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KBR butterfly?

The breakeven for the KBR butterfly priced on this page is roughly $38.78 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 KBR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current KBR implied volatility affect this butterfly?

KBR ATM IV is at 30.30% with IV rank near 3.13%, 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.

KBR Butterfly Strategy

KBR (KBR, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.

KBR, Inc. delivers advanced scientific, technological, and engineering solutions globally to both government entities and commercial enterprises. The company operates through two main divisions: The Government Solutions segment offers all-encompassing support throughout the lifecycle of defense, intelligence, space, aviation, and other missions for governmental and military clients primarily in the United States, the United Kingdom, and Australia. This includes services spanning initial research and development, advanced prototyping, acquisition support, intricate systems engineering, cyber security analysis, space domain awareness, comprehensive testing and evaluation, systems integration, and program management. Additionally, it provides global supply chain management, operational readiness, and sophisticated command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) services. The segment also furnishes expert professional advisory services, delivering high-end systems engineering, system assurance, and advanced technological solutions to clients within the defense, energy, and critical infrastructure domains. The Sustainable Technology Solutions segment encompasses a portfolio of roughly 70 patented process technologies utilized for producing ammonia, syngas, and fertilizers, as well as in chemical/petrochemical manufacturing, clean refining, and circular economy initiatives.

KBR (KBR, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $4.80B, a trailing P/E of 11.41, a beta of 0.45 versus the broader market, a 52-week range of 29.94-52.23, average daily share volume of 1.8M, a public-listing history dating back to 2006, approximately 36K full-time employees. These structural characteristics shape how KBR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.45 indicates KBR 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 11.41 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. KBR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on KBR?

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.

KBR snapshot

As of August 14, 2026, spot at $38.38, ATM IV 30.30%, IV rank 3.13%, expected move 8.69%. The butterfly on KBR 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 154-day expiry.

Why this butterfly structure on KBR specifically: KBR IV at 30.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a KBR butterfly, with a market-implied 1-standard-deviation move of approximately 8.69% (roughly $3.33 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KBR expiries trade a higher absolute premium for lower per-day decay. Position sizing on KBR should anchor to the underlying notional of $38.38 per share and to the trader's directional view on KBR stock.

KBR butterfly setup

The KBR 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 KBR at $38.38 on that close, the first option leg uses a $37.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KBR chain at a 154-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 KBR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$37.50	$4.05
Sell 2	Call	$37.50	$4.05
Buy 1	Call	$40.00	$2.78

KBR butterfly risk and reward

Net Premium / Debit: +$127.50
Max Profit (per contract): $127.50
Max Loss (per contract): -$122.50
Breakeven(s): $38.78
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.

KBR butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on KBR. 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%	+$127.50
$8.49	-77.9%	+$127.50
$16.98	-55.8%	+$127.50
$25.46	-33.7%	+$127.50
$33.95	-11.5%	+$127.50
$42.43	+10.6%	-$122.50
$50.92	+32.7%	-$122.50
$59.40	+54.8%	-$122.50
$67.89	+76.9%	-$122.50
$76.37	+99.0%	-$122.50

When traders use butterfly on KBR

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

KBR thesis for this butterfly

The market-implied 1-standard-deviation range for KBR extends from approximately $35.05 on the downside to $41.71 on the upside. A KBR long call butterfly is a pinning play: it pays maximum at the middle strike if KBR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KBR IV rank near 3.13% 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 KBR at 30.30%. As a Industrials name, KBR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KBR-specific events.

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

Frequently asked questions

What is a butterfly on KBR?: A butterfly on KBR is the butterfly strategy applied to KBR (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 KBR stock at $38.38 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed KBR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are KBR 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 KBR butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.30%), the computed maximum profit is $127.50 per contract and the computed maximum loss is -$122.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KBR butterfly?: The breakeven for the KBR butterfly priced on this page is roughly $38.78 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 KBR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on KBR?: Butterflies on KBR are pinning bets - traders use them when they expect KBR 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 KBR implied volatility affect this butterfly?: KBR ATM IV is at 30.30% with IV rank near 3.13%, 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.