How are MDT 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 MDT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 29.60%), the computed maximum profit is $342.09 per contract and the computed maximum loss is -$149.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MDT butterfly?

The breakeven for the MDT butterfly priced on this page is roughly $87.50 and $94.51 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The MDT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MDT implied volatility affect this butterfly?

MDT ATM IV is at 29.60% with IV rank near 71.97%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

MDT Butterfly Strategy

MDT (Medtronic plc), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.

Medtronic plc is a leading global medical technology enterprise that invents, develops, manufactures, and distributes an extensive range of device-based medical therapies. These solutions serve healthcare systems, clinicians, physicians, and patients across the world. The company's operations are categorized into several key portfolios: Cardiovascular Portfolio: This segment focuses on cardiac health, providing technologies for heart rhythm management, including implantable pacemakers, defibrillators, and monitoring systems, alongside cardiac ablation tools and remote patient software. It also addresses structural heart issues with products like aortic and pulmonary valves, surgical repair devices, and endovascular stent grafts, in addition to offerings for percutaneous coronary interventions (e.g., angioplasty balloons). Medical Surgical Portfolio: Offering a broad spectrum of surgical instruments and therapies, this division includes staples, vessel sealing devices, wound closure products, and electrosurgical equipment. It also pioneers surgical artificial intelligence and robotic-assisted platforms, alongside solutions for hernia repair, gynecology, lung conditions, minimally invasive gastrointestinal and hepatologic diagnostics, patient monitoring, airway management, ventilation therapies, and renal disease.

MDT (Medtronic plc) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $116.83B, a trailing P/E of 24.37, a beta of 0.57 versus the broader market, a 52-week range of 73.31-106.33, average daily share volume of 9.4M, a public-listing history dating back to 1973, approximately 95K full-time employees. These structural characteristics shape how MDT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.57 indicates MDT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. MDT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on MDT?

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.

MDT snapshot

As of August 14, 2026, spot at $91.37, ATM IV 29.60%, IV rank 71.97%, expected move 8.49%. The butterfly on MDT below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this butterfly structure on MDT specifically: MDT IV at 29.60% is rich versus its 1-year range, which makes a premium-buying MDT butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 8.49% (roughly $7.75 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MDT expiries trade a higher absolute premium for lower per-day decay. Position sizing on MDT should anchor to the underlying notional of $91.37 per share and to the trader's directional view on MDT stock.

MDT butterfly setup

The MDT butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With MDT at $91.37 on that close, the first option leg uses a $87.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MDT chain at a 28-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 MDT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$87.00	$5.93
Sell 2	Call	$91.00	$3.45
Buy 1	Call	$96.00	$1.47

MDT butterfly risk and reward

Net Premium / Debit: -$49.50
Max Profit (per contract): $342.09
Max Loss (per contract): -$149.50
Breakeven(s): $87.50, $94.51
Risk / Reward Ratio: 2.288

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.

MDT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MDT. 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%	-$49.50
$20.21	-77.9%	-$49.50
$40.41	-55.8%	-$49.50
$60.61	-33.7%	-$49.50
$80.82	-11.6%	-$49.50
$101.02	+10.6%	-$149.50
$121.22	+32.7%	-$149.50
$141.42	+54.8%	-$149.50
$161.62	+76.9%	-$149.50
$181.82	+99.0%	-$149.50

When traders use butterfly on MDT

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

MDT thesis for this butterfly

The market-implied 1-standard-deviation range for MDT extends from approximately $83.62 on the downside to $99.12 on the upside. A MDT long call butterfly is a pinning play: it pays maximum at the middle strike if MDT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MDT IV rank near 71.97% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MDT at 29.60%. As a Healthcare name, MDT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MDT-specific events.

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

Frequently asked questions

What is a butterfly on MDT?: A butterfly on MDT is the butterfly strategy applied to MDT (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 MDT stock at $91.37 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MDT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are MDT 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 MDT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 29.60%), the computed maximum profit is $342.09 per contract and the computed maximum loss is -$149.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MDT butterfly?: The breakeven for the MDT butterfly priced on this page is roughly $87.50 and $94.51 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The MDT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MDT?: Butterflies on MDT are pinning bets - traders use them when they expect MDT 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 MDT implied volatility affect this butterfly?: MDT ATM IV is at 29.60% with IV rank near 71.97%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.