How are MDB 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 MDB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 66.55%), the computed maximum profit is $1,560.45 per contract and the computed maximum loss is -$387.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MDB butterfly?

The breakeven for the MDB butterfly priced on this page is roughly $351.13 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 MDB market-implied 1-standard-deviation expected move is approximately 19.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MDB implied volatility affect this butterfly?

MDB ATM IV is at 66.55% with IV rank near 50.36%, 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.

MDB Butterfly Strategy

MDB (MongoDB, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.

MongoDB, Inc. serves as a global provider of a versatile database platform. The company's offerings feature MongoDB Enterprise Advanced, a sophisticated commercial database server designed for corporate clients, which can be deployed in cloud, on-premises, or hybrid environments. It also presents MongoDB Atlas, a fully managed, multi-cloud database-as-a-service (DBaaS) solution. For developers seeking to start with MongoDB, the company offers a free, downloadable Community Server that includes fundamental database functionalities. Beyond its core database products, MongoDB, Inc. provides professional services such as consulting and training. Founded in 2007 and based in New York, New York, the company was formerly known as 10gen, Inc. before adopting the name MongoDB, Inc. in August 2013.

MDB (MongoDB, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $25.26B, a beta of 1.55 versus the broader market, a 52-week range of 198.47-444.72, average daily share volume of 2.1M, a public-listing history dating back to 2017, approximately 6K full-time employees. These structural characteristics shape how MDB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.55 indicates MDB has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on MDB?

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 MDB snapshot

As of June 29, 2026, spot at $337.21, ATM IV 66.55%, IV rank 50.36%, expected move 19.08%. The butterfly on MDB 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 MDB specifically: MDB IV at 66.55% 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 19.08% (roughly $64.34 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 MDB expiries trade a higher absolute premium for lower per-day decay. Position sizing on MDB should anchor to the underlying notional of $337.21 per share and to the trader's directional view on MDB stock.

MDB butterfly setup

The MDB 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 MDB near $337.21, the first option leg uses a $320.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MDB 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 MDB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$320.00	$36.18
Sell 2	Call	$335.00	$28.25
Buy 1	Call	$355.00	$19.20

MDB butterfly risk and reward

Net Premium / Debit: +$112.50
Max Profit (per contract): $1,560.45
Max Loss (per contract): -$387.50
Breakeven(s): $351.13
Risk / Reward Ratio: 4.027

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.

MDB butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MDB. 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%	+$112.50
$74.57	-77.9%	+$112.50
$149.13	-55.8%	+$112.50
$223.68	-33.7%	+$112.50
$298.24	-11.6%	+$112.50
$372.80	+10.6%	-$387.50
$447.36	+32.7%	-$387.50
$521.92	+54.8%	-$387.50
$596.47	+76.9%	-$387.50
$671.03	+99.0%	-$387.50

When traders use butterfly on MDB

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

MDB thesis for this butterfly

The market-implied 1-standard-deviation range for MDB extends from approximately $272.87 on the downside to $401.55 on the upside. A MDB long call butterfly is a pinning play: it pays maximum at the middle strike if MDB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MDB IV rank near 50.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on MDB should anchor more to the directional view and the expected-move geometry. As a Technology name, MDB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MDB-specific events.

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

Frequently asked questions

What is a butterfly on MDB?: A butterfly on MDB is the butterfly strategy applied to MDB (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 MDB stock trading near $337.21, the strikes shown on this page are snapped to the nearest listed MDB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MDB 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 MDB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 66.55%), the computed maximum profit is $1,560.45 per contract and the computed maximum loss is -$387.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MDB butterfly?: The breakeven for the MDB butterfly priced on this page is roughly $351.13 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 MDB market-implied 1-standard-deviation expected move is approximately 19.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MDB?: Butterflies on MDB are pinning bets - traders use them when they expect MDB 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 MDB implied volatility affect this butterfly?: MDB ATM IV is at 66.55% with IV rank near 50.36%, 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.