How are MRVL 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 MRVL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 94.46%), the computed maximum profit is $1,307.86 per contract and the computed maximum loss is -$112.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MRVL butterfly?

The breakeven for the MRVL butterfly priced on this page is roughly $283.63 and $311.73 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 MRVL market-implied 1-standard-deviation expected move is approximately 27.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MRVL implied volatility affect this butterfly?

MRVL ATM IV is at 94.46% with IV rank near 75.40%, 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.

MRVL Butterfly Strategy

MRVL (Marvell Technology, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Marvell Technology, Inc., together with its subsidiaries, provides data infrastructure semiconductor solutions and spanning the data center core to network edge in the United States, Argentina, China, India, Israel, Japan, Singapore, South Korea, Taiwan, Vietnam, and internationally. The company develops and scales system-on-a-chip architectures, integrating analog, mixed-signal, and digital signal processing functionality. It offers a portfolio of ethernet solutions, including spanning controllers, network adapters, physical transceivers, and switches; single or multiple core processors; and custom application specific integrated circuits, interconnects, fibre channel adapters, and processors. The company also provides interconnect products, including pulse amplitude modulation, coherent and coherent-lite digital signal processors (DSPs), laser drivers, trans-impedance amplifiers, silicon photonics, co-packaged optics, linear pluggable optics chipsets, data center interconnect, active electrical cable DSPs and peripheral component interconnect express retimer solutions; fibre channel products comprising host bus adapters and controllers for server and storage system connectivity; storage controllers for hard disk drives and solid-state-drives; host system interfaces, including serial advanced technology attachment and serial attached SCSI, peripheral component interconnect express, compute express link switches, non-volatile memory express (NVMe), and NVMe over fabrics; and develops ultra accelerator linkTM switches and ethernet for scale-up networking switches. The company serves data centers, communications, and other markets. It offers its products through direct customers and distributors.

MRVL (Marvell Technology, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $233.37B, a trailing P/E of 93.12, a beta of 2.28 versus the broader market, a 52-week range of 61.44-329.88, average daily share volume of 42.8M, a public-listing history dating back to 2000, approximately 7K full-time employees. These structural characteristics shape how MRVL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.28 indicates MRVL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 93.12 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. MRVL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on MRVL?

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 MRVL snapshot

As of June 30, 2026, spot at $296.80, ATM IV 94.46%, IV rank 75.40%, expected move 27.08%. The butterfly on MRVL 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 31-day expiry.

Why this butterfly structure on MRVL specifically: MRVL IV at 94.46% is rich versus its 1-year range, which makes a premium-buying MRVL butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 27.08% (roughly $80.38 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MRVL expiries trade a higher absolute premium for lower per-day decay. Position sizing on MRVL should anchor to the underlying notional of $296.80 per share and to the trader's directional view on MRVL stock.

MRVL butterfly setup

The MRVL 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 MRVL near $296.80, the first option leg uses a $282.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MRVL chain at a 31-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 MRVL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$282.50	$39.88
Sell 2	Call	$297.50	$32.25
Buy 1	Call	$312.50	$25.75

MRVL butterfly risk and reward

Net Premium / Debit: -$112.50
Max Profit (per contract): $1,307.86
Max Loss (per contract): -$112.50
Breakeven(s): $283.63, $311.73
Risk / Reward Ratio: 11.625

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.

MRVL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MRVL. 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
$65.63	-77.9%	-$112.50
$131.26	-55.8%	-$112.50
$196.88	-33.7%	-$112.50
$262.50	-11.6%	-$112.50
$328.13	+10.6%	-$112.50
$393.75	+32.7%	-$112.50
$459.37	+54.8%	-$112.50
$524.99	+76.9%	-$112.50
$590.62	+99.0%	-$112.50

When traders use butterfly on MRVL

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

MRVL thesis for this butterfly

The market-implied 1-standard-deviation range for MRVL extends from approximately $216.42 on the downside to $377.18 on the upside. A MRVL long call butterfly is a pinning play: it pays maximum at the middle strike if MRVL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MRVL IV rank near 75.40% 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 MRVL at 94.46%. As a Technology name, MRVL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MRVL-specific events.

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

Frequently asked questions

What is a butterfly on MRVL?: A butterfly on MRVL is the butterfly strategy applied to MRVL (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 MRVL stock trading near $296.80, the strikes shown on this page are snapped to the nearest listed MRVL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MRVL 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 MRVL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 94.46%), the computed maximum profit is $1,307.86 per contract and the computed maximum loss is -$112.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MRVL butterfly?: The breakeven for the MRVL butterfly priced on this page is roughly $283.63 and $311.73 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 MRVL market-implied 1-standard-deviation expected move is approximately 27.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MRVL?: Butterflies on MRVL are pinning bets - traders use them when they expect MRVL 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 MRVL implied volatility affect this butterfly?: MRVL ATM IV is at 94.46% with IV rank near 75.40%, 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.