How are LHX 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 LHX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.96%), the computed maximum profit is $1,184.40 per contract and the computed maximum loss is -$295.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LHX butterfly?

The breakeven for the LHX butterfly priced on this page is roughly $277.95 and $302.05 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 LHX market-implied 1-standard-deviation expected move is approximately 8.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LHX implied volatility affect this butterfly?

LHX ATM IV is at 30.96% with IV rank near 64.93%, 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.

LHX Butterfly Strategy

LHX (L3Harris Technologies, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.

L3Harris Technologies, Inc. is a prominent technology firm specializing in aerospace and defense, delivering vital, high-stakes solutions to governmental and commercial clients across the globe. Its diverse operations are organized into several key segments: The Integrated Mission Systems division is responsible for providing versatile intelligence, surveillance, and reconnaissance (ISR) platforms, alongside various communication technologies. This unit also offers comprehensive support for fleet management, as well as the development, modification, and routine maintenance of sensors for ISR and airborne operations. Furthermore, it develops and integrates specialized mission systems tailored for naval vessels and maritime operations, including sophisticated signals and multi-intelligence platforms, autonomous surface and undersea vehicles, and advanced power and ship control electronics. Cutting-edge electro-optical and infrared technologies are also part of its offerings. The Space and Airborne Systems segment is dedicated to providing sophisticated space payloads, advanced sensor technologies, and complete mission solutions for space-based operations.

LHX (L3Harris Technologies, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $54.26B, a trailing P/E of 31.42, a beta of 0.75 versus the broader market, a 52-week range of 247-379.23, average daily share volume of 1.4M, a public-listing history dating back to 1981, approximately 47K full-time employees. These structural characteristics shape how LHX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.75 places LHX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LHX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on LHX?

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 LHX snapshot

As of June 29, 2026, spot at $288.75, ATM IV 30.96%, IV rank 64.93%, expected move 8.88%. The butterfly on LHX 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 LHX specifically: LHX IV at 30.96% 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 8.88% (roughly $25.63 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 LHX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LHX should anchor to the underlying notional of $288.75 per share and to the trader's directional view on LHX stock.

LHX butterfly setup

The LHX 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 LHX near $288.75, the first option leg uses a $275.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LHX 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 LHX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$275.00	$19.25
Sell 2	Call	$290.00	$10.75
Buy 1	Call	$305.00	$5.20

LHX butterfly risk and reward

Net Premium / Debit: -$295.00
Max Profit (per contract): $1,184.40
Max Loss (per contract): -$295.00
Breakeven(s): $277.95, $302.05
Risk / Reward Ratio: 4.015

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.

LHX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on LHX. 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%	-$295.00
$63.85	-77.9%	-$295.00
$127.70	-55.8%	-$295.00
$191.54	-33.7%	-$295.00
$255.38	-11.6%	-$295.00
$319.23	+10.6%	-$295.00
$383.07	+32.7%	-$295.00
$446.91	+54.8%	-$295.00
$510.75	+76.9%	-$295.00
$574.60	+99.0%	-$295.00

When traders use butterfly on LHX

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

LHX thesis for this butterfly

The market-implied 1-standard-deviation range for LHX extends from approximately $263.12 on the downside to $314.38 on the upside. A LHX long call butterfly is a pinning play: it pays maximum at the middle strike if LHX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LHX IV rank near 64.93% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on LHX should anchor more to the directional view and the expected-move geometry. As a Industrials name, LHX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LHX-specific events.

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

Frequently asked questions

What is a butterfly on LHX?: A butterfly on LHX is the butterfly strategy applied to LHX (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 LHX stock trading near $288.75, the strikes shown on this page are snapped to the nearest listed LHX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LHX 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 LHX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.96%), the computed maximum profit is $1,184.40 per contract and the computed maximum loss is -$295.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LHX butterfly?: The breakeven for the LHX butterfly priced on this page is roughly $277.95 and $302.05 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 LHX market-implied 1-standard-deviation expected move is approximately 8.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on LHX?: Butterflies on LHX are pinning bets - traders use them when they expect LHX 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 LHX implied volatility affect this butterfly?: LHX ATM IV is at 30.96% with IV rank near 64.93%, 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.