How are MNDY 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 MNDY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 62.70%), the computed maximum profit is $252.50 per contract and the computed maximum loss is -$247.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MNDY butterfly?

The breakeven for the MNDY butterfly priced on this page is roughly $72.48 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 MNDY market-implied 1-standard-deviation expected move is approximately 17.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MNDY implied volatility affect this butterfly?

MNDY ATM IV is at 62.70% with IV rank near 18.27%, 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.

MNDY Butterfly Strategy

MNDY (monday.com Ltd.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

monday.com Ltd., along with its affiliated entities, designs and provides software solutions for a global market, spanning the United States, Europe, the Middle East, Africa, and other international regions. Its flagship offering is Work OS, an intuitive cloud-native visual work operating system constructed from configurable modules. This platform empowers users to assemble bespoke software applications and effective work management tools. The company further supplies dedicated product solutions catering to various functions, including marketing, customer relationship management (CRM), project coordination, and software engineering. Additionally, monday.com delivers comprehensive business development, presales, and customer support services. Its client base is broad, encompassing diverse organizations, educational and governmental institutions, and specific business divisions within larger enterprises.

MNDY (monday.com Ltd.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.76B, a trailing P/E of 29.38, a beta of 1.23 versus the broader market, a 52-week range of 57.5-316.98, average daily share volume of 1.8M, a public-listing history dating back to 2021, approximately 3K full-time employees. These structural characteristics shape how MNDY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.23 places MNDY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on MNDY?

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 MNDY snapshot

As of June 30, 2026, spot at $72.89, ATM IV 62.70%, IV rank 18.27%, expected move 17.98%. The butterfly on MNDY 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 17-day expiry.

Why this butterfly structure on MNDY specifically: MNDY IV at 62.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a MNDY butterfly, with a market-implied 1-standard-deviation move of approximately 17.98% (roughly $13.10 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MNDY expiries trade a higher absolute premium for lower per-day decay. Position sizing on MNDY should anchor to the underlying notional of $72.89 per share and to the trader's directional view on MNDY stock.

MNDY butterfly setup

The MNDY 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 MNDY near $72.89, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MNDY chain at a 17-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 MNDY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$70.00	$5.55
Sell 2	Call	$75.00	$3.08
Buy 1	Call	$75.00	$3.08

MNDY butterfly risk and reward

Net Premium / Debit: -$247.50
Max Profit (per contract): $252.50
Max Loss (per contract): -$247.50
Breakeven(s): $72.48
Risk / Reward Ratio: 1.020

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.

MNDY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MNDY. 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%	-$247.50
$16.13	-77.9%	-$247.50
$32.24	-55.8%	-$247.50
$48.36	-33.7%	-$247.50
$64.47	-11.6%	-$247.50
$80.59	+10.6%	+$252.50
$96.70	+32.7%	+$252.50
$112.82	+54.8%	+$252.50
$128.93	+76.9%	+$252.50
$145.05	+99.0%	+$252.50

When traders use butterfly on MNDY

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

MNDY thesis for this butterfly

The market-implied 1-standard-deviation range for MNDY extends from approximately $59.79 on the downside to $85.99 on the upside. A MNDY long call butterfly is a pinning play: it pays maximum at the middle strike if MNDY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MNDY IV rank near 18.27% 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 MNDY at 62.70%. As a Technology name, MNDY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MNDY-specific events.

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

Frequently asked questions

What is a butterfly on MNDY?: A butterfly on MNDY is the butterfly strategy applied to MNDY (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 MNDY stock trading near $72.89, the strikes shown on this page are snapped to the nearest listed MNDY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MNDY 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 MNDY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 62.70%), the computed maximum profit is $252.50 per contract and the computed maximum loss is -$247.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MNDY butterfly?: The breakeven for the MNDY butterfly priced on this page is roughly $72.48 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 MNDY market-implied 1-standard-deviation expected move is approximately 17.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MNDY?: Butterflies on MNDY are pinning bets - traders use them when they expect MNDY 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 MNDY implied volatility affect this butterfly?: MNDY ATM IV is at 62.70% with IV rank near 18.27%, 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.