How are LIN 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 LIN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.30%), the computed maximum profit is $1,695.85 per contract and the computed maximum loss is -$725.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LIN butterfly?

The breakeven for the LIN butterfly priced on this page is roughly $487.25 and $522.75 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 LIN market-implied 1-standard-deviation expected move is approximately 6.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LIN implied volatility affect this butterfly?

LIN ATM IV is at 22.30% with IV rank near 50.99%, 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.

LIN Butterfly Strategy

LIN (Linde plc), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NASDAQ.

Linde plc operates as an industrial gas and engineering company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific. It offers atmospheric gases, including oxygen, nitrogen, argon, and rare gases; and process gases, such as carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. The company also designs and constructs turnkey process plants for third-party customers, as well as for the gas businesses in various locations, such as olefin, natural gas, air separation, hydrogen, and synthesis gas plants. It serves a range of industries, including healthcare, energy, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, and water treatment. The company was founded in 1879 and is based in Woking, the United Kingdom.

LIN (Linde plc) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $237.43B, a trailing P/E of 33.43, a beta of 0.74 versus the broader market, a 52-week range of 387.78-521.28, average daily share volume of 2.4M, a public-listing history dating back to 1992, approximately 65K full-time employees. These structural characteristics shape how LIN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.74 places LIN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LIN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on LIN?

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 LIN snapshot

As of May 15, 2026, spot at $506.75, ATM IV 22.30%, IV rank 50.99%, expected move 6.39%. The butterfly on LIN 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 LIN specifically: LIN IV at 22.30% 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 6.39% (roughly $32.40 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 LIN expiries trade a higher absolute premium for lower per-day decay. Position sizing on LIN should anchor to the underlying notional of $506.75 per share and to the trader's directional view on LIN stock.

LIN butterfly setup

The LIN 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 LIN near $506.75, the first option leg uses a $480.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LIN 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 LIN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$480.00	$31.85
Sell 2	Call	$505.00	$14.85
Buy 1	Call	$530.00	$5.10

LIN butterfly risk and reward

Net Premium / Debit: -$725.00
Max Profit (per contract): $1,695.85
Max Loss (per contract): -$725.00
Breakeven(s): $487.25, $522.75
Risk / Reward Ratio: 2.339

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.

LIN butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on LIN. 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%	-$725.00
$112.05	-77.9%	-$725.00
$224.10	-55.8%	-$725.00
$336.14	-33.7%	-$725.00
$448.19	-11.6%	-$725.00
$560.23	+10.6%	-$725.00
$672.27	+32.7%	-$725.00
$784.32	+54.8%	-$725.00
$896.36	+76.9%	-$725.00
$1,008.41	+99.0%	-$725.00

When traders use butterfly on LIN

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

LIN thesis for this butterfly

The market-implied 1-standard-deviation range for LIN extends from approximately $474.35 on the downside to $539.15 on the upside. A LIN long call butterfly is a pinning play: it pays maximum at the middle strike if LIN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LIN IV rank near 50.99% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on LIN should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, LIN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LIN-specific events.

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

Frequently asked questions

What is a butterfly on LIN?: A butterfly on LIN is the butterfly strategy applied to LIN (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 LIN stock trading near $506.75, the strikes shown on this page are snapped to the nearest listed LIN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LIN 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 LIN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.30%), the computed maximum profit is $1,695.85 per contract and the computed maximum loss is -$725.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LIN butterfly?: The breakeven for the LIN butterfly priced on this page is roughly $487.25 and $522.75 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 LIN market-implied 1-standard-deviation expected move is approximately 6.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on LIN?: Butterflies on LIN are pinning bets - traders use them when they expect LIN 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 LIN implied volatility affect this butterfly?: LIN ATM IV is at 22.30% with IV rank near 50.99%, 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.