How are LBRT 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 LBRT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 58.30%), the computed maximum profit is $166.45 per contract and the computed maximum loss is -$22.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LBRT butterfly?

The breakeven for the LBRT butterfly priced on this page is roughly $31.23 and $34.78 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 LBRT market-implied 1-standard-deviation expected move is approximately 16.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LBRT implied volatility affect this butterfly?

LBRT ATM IV is at 58.30% with IV rank near 12.64%, 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.

LBRT Butterfly Strategy

LBRT (Liberty Energy Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.

Liberty Energy Inc. provides hydraulic fracturing and wireline services, and related goods to onshore oil and natural gas exploration and production companies in North America. It also offers hydraulic fracturing pressure pumping services, including pressure pumping and pumpdown perforating services, as well wireline services, proppant delivery solutions, data analytics, related goods and technologies. In addition, the company owns operates two sand mines in the Permian Basin. As of December 31, 2021, it had a total of approximately 30 active frac fleets. The company offers its services primarily in the Permian Basin, the Eagle Ford Shale, the Denver-Julesburg Basin, the Williston Basin, and the Powder River Basin. The company was formerly known as Liberty Oilfield Services Inc. and changed its name to Liberty Energy Inc. in April 2022.

LBRT (Liberty Energy Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $5.46B, a trailing P/E of 36.09, a beta of 0.57 versus the broader market, a 52-week range of 9.9-34.415, average daily share volume of 4.4M, a public-listing history dating back to 2018, approximately 6K full-time employees. These structural characteristics shape how LBRT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.57 indicates LBRT 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 36.09 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. LBRT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on LBRT?

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 LBRT snapshot

As of May 15, 2026, spot at $32.94, ATM IV 58.30%, IV rank 12.64%, expected move 16.71%. The butterfly on LBRT 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 LBRT specifically: LBRT IV at 58.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a LBRT butterfly, with a market-implied 1-standard-deviation move of approximately 16.71% (roughly $5.51 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 LBRT expiries trade a higher absolute premium for lower per-day decay. Position sizing on LBRT should anchor to the underlying notional of $32.94 per share and to the trader's directional view on LBRT stock.

LBRT butterfly setup

The LBRT 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 LBRT near $32.94, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LBRT 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 LBRT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$31.00	$3.30
Sell 2	Call	$33.00	$2.28
Buy 1	Call	$35.00	$1.48

LBRT butterfly risk and reward

Net Premium / Debit: -$22.50
Max Profit (per contract): $166.45
Max Loss (per contract): -$22.50
Breakeven(s): $31.23, $34.78
Risk / Reward Ratio: 7.398

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.

LBRT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on LBRT. 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%	-$22.50
$7.29	-77.9%	-$22.50
$14.57	-55.8%	-$22.50
$21.86	-33.6%	-$22.50
$29.14	-11.5%	-$22.50
$36.42	+10.6%	-$22.50
$43.70	+32.7%	-$22.50
$50.98	+54.8%	-$22.50
$58.27	+76.9%	-$22.50
$65.55	+99.0%	-$22.50

When traders use butterfly on LBRT

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

LBRT thesis for this butterfly

The market-implied 1-standard-deviation range for LBRT extends from approximately $27.43 on the downside to $38.45 on the upside. A LBRT long call butterfly is a pinning play: it pays maximum at the middle strike if LBRT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LBRT IV rank near 12.64% 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 LBRT at 58.30%. As a Energy name, LBRT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LBRT-specific events.

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

Frequently asked questions

What is a butterfly on LBRT?: A butterfly on LBRT is the butterfly strategy applied to LBRT (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 LBRT stock trading near $32.94, the strikes shown on this page are snapped to the nearest listed LBRT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LBRT 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 LBRT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 58.30%), the computed maximum profit is $166.45 per contract and the computed maximum loss is -$22.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LBRT butterfly?: The breakeven for the LBRT butterfly priced on this page is roughly $31.23 and $34.78 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 LBRT market-implied 1-standard-deviation expected move is approximately 16.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on LBRT?: Butterflies on LBRT are pinning bets - traders use them when they expect LBRT 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 LBRT implied volatility affect this butterfly?: LBRT ATM IV is at 58.30% with IV rank near 12.64%, 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.