How are MMSI 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 MMSI butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $399.06 per contract and the computed maximum loss is -$80.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MMSI butterfly?

The breakeven for the MMSI butterfly priced on this page is roughly $85.80 and $94.20 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 MMSI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MMSI implied volatility affect this butterfly?

MMSI ATM IV is at 24.70% with IV rank near 2.04%, 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.

MMSI Butterfly Strategy

MMSI (Merit Medical Systems, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.

Merit Medical Systems, Inc. (MMSI) is engaged in the design, development, manufacturing, and worldwide commercialization of disposable medical products. These devices are crucial for a broad spectrum of diagnostic, therapeutic, and interventional procedures, primarily within the fields of cardiology, radiology, oncology, critical care, and endoscopy. The company operates through two main divisions: Cardiovascular and Endoscopy. Its extensive product portfolio includes advanced solutions for diagnosing and treating conditions in peripheral vessels and organs, as well as a comprehensive suite of cardiac intervention products. The latter encompasses tools for vascular access, angiography, electrophysiology, cardiac rhythm management, fluid and hemodynamic monitoring, hemostasis, and various interventional therapies for heart-related ailments. Additionally, MMSI provides customized procedural solutions, offering critical care items, disinfection protection systems, specialized syringes, manifold kits, and tailored trays and packs.

MMSI (Merit Medical Systems, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $5.45B, a trailing P/E of 37.39, a beta of 0.49 versus the broader market, a 52-week range of 59.74-94.75, average daily share volume of 850K, a public-listing history dating back to 1990, approximately 8K full-time employees. These structural characteristics shape how MMSI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.49 indicates MMSI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 37.39 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a butterfly on MMSI?

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.

MMSI snapshot

As of August 14, 2026, spot at $90.66, ATM IV 24.70%, IV rank 2.04%, expected move 7.08%. The butterfly on MMSI 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 126-day expiry.

Why this butterfly structure on MMSI specifically: MMSI IV at 24.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a MMSI butterfly, with a market-implied 1-standard-deviation move of approximately 7.08% (roughly $6.42 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MMSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MMSI should anchor to the underlying notional of $90.66 per share and to the trader's directional view on MMSI stock.

MMSI butterfly setup

The MMSI 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 MMSI at $90.66 on that close, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MMSI chain at a 126-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 MMSI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$85.00	$10.20
Sell 2	Call	$90.00	$7.00
Buy 1	Call	$95.00	$4.60

MMSI butterfly risk and reward

Net Premium / Debit: -$80.00
Max Profit (per contract): $399.06
Max Loss (per contract): -$80.00
Breakeven(s): $85.80, $94.20
Risk / Reward Ratio: 4.988

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.

MMSI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MMSI. 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%	-$80.00
$20.05	-77.9%	-$80.00
$40.10	-55.8%	-$80.00
$60.14	-33.7%	-$80.00
$80.19	-11.6%	-$80.00
$100.23	+10.6%	-$80.00
$120.28	+32.7%	-$80.00
$140.32	+54.8%	-$80.00
$160.36	+76.9%	-$80.00
$180.41	+99.0%	-$80.00

When traders use butterfly on MMSI

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

MMSI thesis for this butterfly

The market-implied 1-standard-deviation range for MMSI extends from approximately $84.24 on the downside to $97.08 on the upside. A MMSI long call butterfly is a pinning play: it pays maximum at the middle strike if MMSI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MMSI IV rank near 2.04% 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 MMSI at 24.70%. As a Healthcare name, MMSI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MMSI-specific events.

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

Frequently asked questions

What is a butterfly on MMSI?: A butterfly on MMSI is the butterfly strategy applied to MMSI (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 MMSI stock at $90.66 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MMSI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are MMSI 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 MMSI butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $399.06 per contract and the computed maximum loss is -$80.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MMSI butterfly?: The breakeven for the MMSI butterfly priced on this page is roughly $85.80 and $94.20 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 MMSI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MMSI?: Butterflies on MMSI are pinning bets - traders use them when they expect MMSI 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 MMSI implied volatility affect this butterfly?: MMSI ATM IV is at 24.70% with IV rank near 2.04%, 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.