How are MEDP 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 MEDP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.60%), the computed maximum profit is $1,764.24 per contract and the computed maximum loss is -$185.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MEDP butterfly?

The breakeven for the MEDP butterfly priced on this page is roughly $401.38 and $438.39 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 MEDP market-implied 1-standard-deviation expected move is approximately 10.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MEDP implied volatility affect this butterfly?

MEDP ATM IV is at 36.60% with IV rank near 18.76%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

MEDP Butterfly Strategy

MEDP (Medpace Holdings, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.

Medpace Holdings, Inc. provides clinical research-based drug and medical device development services in North America, Europe, and Asia. It offers a suite of services supporting the clinical development process from Phase I to Phase IV in various therapeutic areas. The company also provides clinical development services to the pharmaceutical, biotechnology, and medical device industries; and development plan design, coordinated central laboratory, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, and post-marketing clinical support services. In addition, it offers bio-analytical laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. The company was founded in 1992 and is based in Cincinnati, Ohio.

MEDP (Medpace Holdings, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $12.10B, a trailing P/E of 26.18, a beta of 1.19 versus the broader market, a 52-week range of 284.48-628.916, average daily share volume of 398K, a public-listing history dating back to 2016, approximately 6K full-time employees. These structural characteristics shape how MEDP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.19 places MEDP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on MEDP?

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 MEDP snapshot

As of May 15, 2026, spot at $417.39, ATM IV 36.60%, IV rank 18.76%, expected move 10.49%. The butterfly on MEDP 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 MEDP specifically: MEDP IV at 36.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a MEDP butterfly, with a market-implied 1-standard-deviation move of approximately 10.49% (roughly $43.80 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 MEDP expiries trade a higher absolute premium for lower per-day decay. Position sizing on MEDP should anchor to the underlying notional of $417.39 per share and to the trader's directional view on MEDP stock.

MEDP butterfly setup

The MEDP 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 MEDP near $417.39, the first option leg uses a $400.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MEDP 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 MEDP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$400.00	$29.25
Sell 2	Call	$420.00	$19.05
Buy 1	Call	$440.00	$10.70

MEDP butterfly risk and reward

Net Premium / Debit: -$185.00
Max Profit (per contract): $1,764.24
Max Loss (per contract): -$185.00
Breakeven(s): $401.38, $438.39
Risk / Reward Ratio: 9.536

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.

MEDP butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MEDP. 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%	-$185.00
$92.30	-77.9%	-$185.00
$184.58	-55.8%	-$185.00
$276.87	-33.7%	-$185.00
$369.15	-11.6%	-$185.00
$461.44	+10.6%	-$185.00
$553.73	+32.7%	-$185.00
$646.01	+54.8%	-$185.00
$738.30	+76.9%	-$185.00
$830.59	+99.0%	-$185.00

When traders use butterfly on MEDP

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

MEDP thesis for this butterfly

The market-implied 1-standard-deviation range for MEDP extends from approximately $373.59 on the downside to $461.19 on the upside. A MEDP long call butterfly is a pinning play: it pays maximum at the middle strike if MEDP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MEDP IV rank near 18.76% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on MEDP at 36.60%. As a Healthcare name, MEDP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MEDP-specific events.

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

Frequently asked questions

What is a butterfly on MEDP?: A butterfly on MEDP is the butterfly strategy applied to MEDP (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 MEDP stock trading near $417.39, the strikes shown on this page are snapped to the nearest listed MEDP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MEDP 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 MEDP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.60%), the computed maximum profit is $1,764.24 per contract and the computed maximum loss is -$185.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MEDP butterfly?: The breakeven for the MEDP butterfly priced on this page is roughly $401.38 and $438.39 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 MEDP market-implied 1-standard-deviation expected move is approximately 10.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MEDP?: Butterflies on MEDP are pinning bets - traders use them when they expect MEDP 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 MEDP implied volatility affect this butterfly?: MEDP ATM IV is at 36.60% with IV rank near 18.76%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.