How are LEU 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 LEU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 75.60%), the computed maximum profit is $709.66 per contract and the computed maximum loss is -$240.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LEU butterfly?

The breakeven for the LEU butterfly priced on this page is roughly $172.40 and $187.60 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 LEU market-implied 1-standard-deviation expected move is approximately 21.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LEU implied volatility affect this butterfly?

LEU ATM IV is at 75.60% with IV rank near 12.87%, 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.

LEU Butterfly Strategy

LEU (Centrus Energy Corp.), in the Energy sector, (Uranium industry), listed on NYSE.

Centrus Energy Corp. supplies nuclear fuel and services for the nuclear power industry in the United States, Japan, Belgium, and internationally. The company operates through two segments, Low-Enriched Uranium (LEU) and Technical Solutions. The LEU segment sells separative work units (SWU) component of LEU; SWU and natural uranium components of LEU; and natural uranium for utilities that operate nuclear power plants. The Technical Solutions segment offers technical, manufacturing, engineering, procurement, construction, and operations services to public and private sector customers, including the American Centrifuge engineering and testing activities. The company was formerly known as USEC Inc. and changed its name to Centrus Energy Corp. in September 2014. Centrus Energy Corp. was incorporated in 1998 and is headquartered in Bethesda, Maryland.

LEU (Centrus Energy Corp.) trades in the Energy sector, specifically Uranium, with a market capitalization of approximately $3.64B, a trailing P/E of 62.75, a beta of 1.44 versus the broader market, a 52-week range of 90.25-464.25, average daily share volume of 831K, a public-listing history dating back to 1998, approximately 322 full-time employees. These structural characteristics shape how LEU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.44 indicates LEU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 62.75 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.

What is a butterfly on LEU?

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 LEU snapshot

As of May 15, 2026, spot at $181.41, ATM IV 75.60%, IV rank 12.87%, expected move 21.67%. The butterfly on LEU 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 LEU specifically: LEU IV at 75.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a LEU butterfly, with a market-implied 1-standard-deviation move of approximately 21.67% (roughly $39.32 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 LEU expiries trade a higher absolute premium for lower per-day decay. Position sizing on LEU should anchor to the underlying notional of $181.41 per share and to the trader's directional view on LEU stock.

LEU butterfly setup

The LEU 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 LEU near $181.41, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LEU 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 LEU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$170.00	$24.30
Sell 2	Call	$180.00	$17.70
Buy 1	Call	$190.00	$13.50

LEU butterfly risk and reward

Net Premium / Debit: -$240.00
Max Profit (per contract): $709.66
Max Loss (per contract): -$240.00
Breakeven(s): $172.40, $187.60
Risk / Reward Ratio: 2.957

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.

LEU butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on LEU. 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%	-$240.00
$40.12	-77.9%	-$240.00
$80.23	-55.8%	-$240.00
$120.34	-33.7%	-$240.00
$160.45	-11.6%	-$240.00
$200.56	+10.6%	-$240.00
$240.67	+32.7%	-$240.00
$280.78	+54.8%	-$240.00
$320.89	+76.9%	-$240.00
$361.00	+99.0%	-$240.00

When traders use butterfly on LEU

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

LEU thesis for this butterfly

The market-implied 1-standard-deviation range for LEU extends from approximately $142.09 on the downside to $220.73 on the upside. A LEU long call butterfly is a pinning play: it pays maximum at the middle strike if LEU settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LEU IV rank near 12.87% 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 LEU at 75.60%. As a Energy name, LEU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LEU-specific events.

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

Frequently asked questions

What is a butterfly on LEU?: A butterfly on LEU is the butterfly strategy applied to LEU (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 LEU stock trading near $181.41, the strikes shown on this page are snapped to the nearest listed LEU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LEU 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 LEU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 75.60%), the computed maximum profit is $709.66 per contract and the computed maximum loss is -$240.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LEU butterfly?: The breakeven for the LEU butterfly priced on this page is roughly $172.40 and $187.60 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 LEU market-implied 1-standard-deviation expected move is approximately 21.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on LEU?: Butterflies on LEU are pinning bets - traders use them when they expect LEU 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 LEU implied volatility affect this butterfly?: LEU ATM IV is at 75.60% with IV rank near 12.87%, 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.