How are KMB 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 KMB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 27.63%), the computed maximum profit is $361.98 per contract and the computed maximum loss is -$232.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KMB butterfly?

The breakeven for the KMB butterfly priced on this page is roughly $105.33 and $112.68 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 KMB market-implied 1-standard-deviation expected move is approximately 7.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current KMB implied volatility affect this butterfly?

KMB ATM IV is at 27.63% with IV rank near 58.86%, 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.

KMB Butterfly Strategy

KMB (Kimberly-Clark Corporation), in the Consumer Defensive sector, (Household & Personal Products industry), listed on NASDAQ.

Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care products in the United States. It operates in two segments, North America and International Personal Care. The North America segment offers disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers, and other related products under the Huggies, Pull-Ups, Goodnites, Kotex, Poise, Depend, Kleenex, Scott, Cottonelle, Viva, Wypall , and other brand names. Its International Personal Care segment provides baby and child care, adult care and feminine care, including disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, and other related products under the Huggies, Kotex, Goodfeel, Intimus, Depend, and other brand names. The company sells its household use products directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores, and other retail outlets, as well as through other distributors and e-commerce. It also sells its professional use products through distributors, directly to manufacturing, lodging, office building, food service, and high-volume public facilities, and through e-commerce.

KMB (Kimberly-Clark Corporation) trades in the Consumer Defensive sector, specifically Household & Personal Products, with a market capitalization of approximately $36.30B, a trailing P/E of 17.13, a beta of 0.30 versus the broader market, a 52-week range of 92.42-137.46, average daily share volume of 4.9M, a public-listing history dating back to 1980, approximately 36K full-time employees. These structural characteristics shape how KMB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.30 indicates KMB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. KMB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on KMB?

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 KMB snapshot

As of June 26, 2026, spot at $109.49, ATM IV 27.63%, IV rank 58.86%, expected move 7.92%. The butterfly on KMB 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 32-day expiry.

Why this butterfly structure on KMB specifically: KMB IV at 27.63% 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 7.92% (roughly $8.67 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KMB expiries trade a higher absolute premium for lower per-day decay. Position sizing on KMB should anchor to the underlying notional of $109.49 per share and to the trader's directional view on KMB stock.

KMB butterfly setup

The KMB 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 KMB near $109.49, the first option leg uses a $104.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KMB chain at a 32-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 KMB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$104.00	$6.95
Sell 2	Call	$109.00	$3.70
Buy 1	Call	$115.00	$1.78

KMB butterfly risk and reward

Net Premium / Debit: -$132.50
Max Profit (per contract): $361.98
Max Loss (per contract): -$232.50
Breakeven(s): $105.33, $112.68
Risk / Reward Ratio: 1.557

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.

KMB butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on KMB. 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%	-$132.50
$24.22	-77.9%	-$132.50
$48.43	-55.8%	-$132.50
$72.63	-33.7%	-$132.50
$96.84	-11.6%	-$132.50
$121.05	+10.6%	-$232.50
$145.26	+32.7%	-$232.50
$169.46	+54.8%	-$232.50
$193.67	+76.9%	-$232.50
$217.88	+99.0%	-$232.50

When traders use butterfly on KMB

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

KMB thesis for this butterfly

The market-implied 1-standard-deviation range for KMB extends from approximately $100.82 on the downside to $118.16 on the upside. A KMB long call butterfly is a pinning play: it pays maximum at the middle strike if KMB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KMB IV rank near 58.86% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on KMB should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, KMB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KMB-specific events.

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

Frequently asked questions

What is a butterfly on KMB?: A butterfly on KMB is the butterfly strategy applied to KMB (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 KMB stock trading near $109.49, the strikes shown on this page are snapped to the nearest listed KMB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are KMB 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 KMB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 27.63%), the computed maximum profit is $361.98 per contract and the computed maximum loss is -$232.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KMB butterfly?: The breakeven for the KMB butterfly priced on this page is roughly $105.33 and $112.68 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 KMB market-implied 1-standard-deviation expected move is approximately 7.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on KMB?: Butterflies on KMB are pinning bets - traders use them when they expect KMB 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 KMB implied volatility affect this butterfly?: KMB ATM IV is at 27.63% with IV rank near 58.86%, 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.