How are LEVI 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 LEVI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.40%), the computed maximum profit is $80.46 per contract and the computed maximum loss is -$12.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LEVI butterfly?

The breakeven for the LEVI butterfly priced on this page is roughly $24.10 and $25.88 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 LEVI market-implied 1-standard-deviation expected move is approximately 15.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LEVI implied volatility affect this butterfly?

LEVI ATM IV is at 53.40% with IV rank near 43.52%, 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.

LEVI Butterfly Strategy

LEVI (Levi Strauss & Co.), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NYSE.

Levi Strauss & Co. stands as a prominent global clothing enterprise, actively involved in the conceptualization, promotion, and distribution of an extensive collection of apparel and related accessories. Their comprehensive product line includes denim, casual and formal trousers, athletic wear, tops, shorts, skirts, dresses, jackets, footwear, and various other accessories, all designed to appeal to men, women, and children across the Americas, Europe, and Asia. The company markets its offerings under several renowned brands, such as Levi's, Dockers, Signature by Levi Strauss & Co., and Denizen. Furthermore, Levi Strauss & Co. extends its reach by granting licenses for its Levi's and Dockers trademarks to be utilized across an expanded array of product categories, including footwear, belts, small leather goods, outerwear, knitwear, dress shirts, children's apparel, sleepwear, and hosiery. The distribution of its merchandise occurs through a multifaceted approach: via independent retailers like major department stores, specialized boutiques, third-party e-commerce platforms, and franchised outlets dedicated to its brands. Concurrently, the company fosters a direct relationship with consumers through its own network of mainline and clearance stores, proprietary online sales portals, and select in-store concessions situated within larger retail environments.

LEVI (Levi Strauss & Co.) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $9.67B, a trailing P/E of 15.46, a beta of 1.34 versus the broader market, a 52-week range of 17.72-24.925, average daily share volume of 2.9M, a public-listing history dating back to 2019, approximately 19K full-time employees. These structural characteristics shape how LEVI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.34 indicates LEVI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. LEVI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on LEVI?

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 LEVI snapshot

As of June 30, 2026, spot at $24.80, ATM IV 53.40%, IV rank 43.52%, expected move 15.31%. The butterfly on LEVI 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 17-day expiry.

Why this butterfly structure on LEVI specifically: LEVI IV at 53.40% 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 15.31% (roughly $3.80 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LEVI expiries trade a higher absolute premium for lower per-day decay. Position sizing on LEVI should anchor to the underlying notional of $24.80 per share and to the trader's directional view on LEVI stock.

LEVI butterfly setup

The LEVI 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 LEVI near $24.80, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LEVI chain at a 17-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 LEVI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$24.00	$1.65
Sell 2	Call	$25.00	$1.10
Buy 1	Call	$26.00	$0.68

LEVI butterfly risk and reward

Net Premium / Debit: -$12.50
Max Profit (per contract): $80.46
Max Loss (per contract): -$12.50
Breakeven(s): $24.10, $25.88
Risk / Reward Ratio: 6.437

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.

LEVI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on LEVI. 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%	-$12.50
$5.49	-77.9%	-$12.50
$10.97	-55.7%	-$12.50
$16.46	-33.6%	-$12.50
$21.94	-11.5%	-$12.50
$27.42	+10.6%	-$12.50
$32.90	+32.7%	-$12.50
$38.39	+54.8%	-$12.50
$43.87	+76.9%	-$12.50
$49.35	+99.0%	-$12.50

When traders use butterfly on LEVI

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

LEVI thesis for this butterfly

The market-implied 1-standard-deviation range for LEVI extends from approximately $21.00 on the downside to $28.60 on the upside. A LEVI long call butterfly is a pinning play: it pays maximum at the middle strike if LEVI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LEVI IV rank near 43.52% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on LEVI should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, LEVI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LEVI-specific events.

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

Frequently asked questions

What is a butterfly on LEVI?: A butterfly on LEVI is the butterfly strategy applied to LEVI (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 LEVI stock trading near $24.80, the strikes shown on this page are snapped to the nearest listed LEVI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LEVI 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 LEVI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.40%), the computed maximum profit is $80.46 per contract and the computed maximum loss is -$12.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LEVI butterfly?: The breakeven for the LEVI butterfly priced on this page is roughly $24.10 and $25.88 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 LEVI market-implied 1-standard-deviation expected move is approximately 15.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on LEVI?: Butterflies on LEVI are pinning bets - traders use them when they expect LEVI 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 LEVI implied volatility affect this butterfly?: LEVI ATM IV is at 53.40% with IV rank near 43.52%, 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.