How are KNX 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 KNX butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.10%), the computed maximum profit is $277.18 per contract and the computed maximum loss is -$202.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KNX butterfly?

The breakeven for the KNX butterfly priced on this page is roughly $62.03 at expiration, derived from the September 29, 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 KNX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current KNX implied volatility affect this butterfly?

KNX ATM IV is at 40.10% with IV rank near 34.72%, 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.

KNX Butterfly Strategy

KNX (Knight-Swift Transportation Holdings Inc.), in the Industrials sector, (Trucking industry), listed on NYSE.

Knight-Swift Transportation Holdings Inc. (KNX) stands as a prominent provider of transportation services, specializing in truckload freight solutions for clients throughout the United States, Mexico, and Canada. Its operational scope is segmented into four key areas: Trucking, Logistics, Less-than-truckload (LTL), and Intermodal. Under its Trucking segment, the company manages a diverse portfolio of services, including irregular route, dedicated, temperature-controlled (refrigerated), flatbed, expedited, dry van, drayage, and cross-border transportation for a wide variety of goods and materials. Beyond its core trucking operations, Knight-Swift provides logistics and intermodal solutions, which include freight brokerage, intermodal services, comprehensive freight management, and various non-trucking offerings. The firm also extends a suite of support services, such as vehicle repair and maintenance, warranty coverage, insurance, equipment leasing, manufacturing and warehousing of trailer parts, and professional driver training through its academy. Additionally, Knight-Swift facilitates national transportation requirements through its regional direct services, utilizing third-party carriers to cover regions outside its proprietary network.

KNX (Knight-Swift Transportation Holdings Inc.) trades in the Industrials sector, specifically Trucking, with a market capitalization of approximately $10.35B, a trailing P/E of 240.79, a beta of 1.18 versus the broader market, a 52-week range of 38.91-82.86, average daily share volume of 3.9M, a public-listing history dating back to 1994, approximately 37K full-time employees. These structural characteristics shape how KNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.18 places KNX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 240.79 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. KNX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on KNX?

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.

KNX snapshot

As of September 29, 2026, spot at $64.23, ATM IV 40.10%, IV rank 34.72%, expected move 11.50%. The butterfly on KNX below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 52-day expiry.

Why this butterfly structure on KNX specifically: KNX IV at 40.10% 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 11.50% (roughly $7.38 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on KNX should anchor to the underlying notional of $64.23 per share and to the trader's directional view on KNX stock.

KNX butterfly setup

The KNX butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With KNX at $64.23 on that close, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KNX chain at a 52-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 KNX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$60.00	$6.65
Sell 2	Call	$65.00	$3.60
Buy 1	Call	$67.50	$2.58

KNX butterfly risk and reward

Net Premium / Debit: -$202.50
Max Profit (per contract): $277.18
Max Loss (per contract): -$202.50
Breakeven(s): $62.03
Risk / Reward Ratio: 1.369

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.

KNX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on KNX. 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%	-$202.50
$14.21	-77.9%	-$202.50
$28.41	-55.8%	-$202.50
$42.61	-33.7%	-$202.50
$56.81	-11.5%	-$202.50
$71.01	+10.6%	+$47.50
$85.21	+32.7%	+$47.50
$99.41	+54.8%	+$47.50
$113.61	+76.9%	+$47.50
$127.81	+99.0%	+$47.50

When traders use butterfly on KNX

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

KNX thesis for this butterfly

The market-implied 1-standard-deviation range for KNX extends from approximately $56.85 on the downside to $71.61 on the upside. A KNX long call butterfly is a pinning play: it pays maximum at the middle strike if KNX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KNX IV rank near 34.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on KNX should anchor more to the directional view and the expected-move geometry. As a Industrials name, KNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KNX-specific events.

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

Frequently asked questions

What is a butterfly on KNX?: A butterfly on KNX is the butterfly strategy applied to KNX (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 KNX stock at $64.23 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed KNX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are KNX 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 KNX butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.10%), the computed maximum profit is $277.18 per contract and the computed maximum loss is -$202.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KNX butterfly?: The breakeven for the KNX butterfly priced on this page is roughly $62.03 at expiration, derived from the September 29, 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 KNX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on KNX?: Butterflies on KNX are pinning bets - traders use them when they expect KNX 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 KNX implied volatility affect this butterfly?: KNX ATM IV is at 40.10% with IV rank near 34.72%, 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.