How are MTN 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 MTN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.60%), the computed maximum profit is $510.21 per contract and the computed maximum loss is -$482.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MTN butterfly?

The breakeven for the MTN butterfly priced on this page is roughly $140.18 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 MTN market-implied 1-standard-deviation expected move is approximately 10.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MTN implied volatility affect this butterfly?

MTN ATM IV is at 37.60% with IV rank near 25.55%, 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.

MTN Butterfly Strategy

MTN (Vail Resorts, Inc.), in the Consumer Cyclical sector, (Gambling, Resorts & Casinos industry), listed on NYSE.

Vail Resorts, Inc., operating through its various subsidiary entities, oversees a portfolio of mountain resorts and urban ski areas located across the United States. The company's business activities are structured into three distinct segments: Mountain, Lodging, and Real Estate. The Mountain division is responsible for managing 37 prominent mountain destinations and regional ski facilities. This segment also handles a range of complementary services, including ski instruction, dining establishments, retail and equipment rental operations, and real estate brokerage. The Lodging segment encompasses the ownership and/or management of numerous luxury hotels, condominiums, and other accommodation options, particularly those under the RockResorts brand. Additionally, it oversees condominiums situated near Vail's mountain resorts, operates various destination resorts and golf courses, and furnishes ground transportation services within its resort areas.

MTN (Vail Resorts, Inc.) trades in the Consumer Cyclical sector, specifically Gambling, Resorts & Casinos, with a market capitalization of approximately $4.92B, a trailing P/E of 27.83, a beta of 0.73 versus the broader market, a 52-week range of 118.51-172, average daily share volume of 958K, a public-listing history dating back to 1997, approximately 8K full-time employees. These structural characteristics shape how MTN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.73 places MTN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MTN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on MTN?

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 MTN snapshot

As of June 30, 2026, spot at $135.75, ATM IV 37.60%, IV rank 25.55%, expected move 10.78%. The butterfly on MTN 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 MTN specifically: MTN IV at 37.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a MTN butterfly, with a market-implied 1-standard-deviation move of approximately 10.78% (roughly $14.63 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 MTN expiries trade a higher absolute premium for lower per-day decay. Position sizing on MTN should anchor to the underlying notional of $135.75 per share and to the trader's directional view on MTN stock.

MTN butterfly setup

The MTN 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 MTN near $135.75, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MTN 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 MTN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$130.00	$8.05
Sell 2	Call	$135.00	$4.85
Buy 1	Call	$145.00	$1.48

MTN butterfly risk and reward

Net Premium / Debit: +$17.50
Max Profit (per contract): $510.21
Max Loss (per contract): -$482.50
Breakeven(s): $140.18
Risk / Reward Ratio: 1.057

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.

MTN butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MTN. 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%	+$17.50
$30.02	-77.9%	+$17.50
$60.04	-55.8%	+$17.50
$90.05	-33.7%	+$17.50
$120.07	-11.6%	+$17.50
$150.08	+10.6%	-$482.50
$180.09	+32.7%	-$482.50
$210.11	+54.8%	-$482.50
$240.12	+76.9%	-$482.50
$270.14	+99.0%	-$482.50

When traders use butterfly on MTN

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

MTN thesis for this butterfly

The market-implied 1-standard-deviation range for MTN extends from approximately $121.12 on the downside to $150.38 on the upside. A MTN long call butterfly is a pinning play: it pays maximum at the middle strike if MTN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MTN IV rank near 25.55% 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 MTN at 37.60%. As a Consumer Cyclical name, MTN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MTN-specific events.

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

Frequently asked questions

What is a butterfly on MTN?: A butterfly on MTN is the butterfly strategy applied to MTN (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 MTN stock trading near $135.75, the strikes shown on this page are snapped to the nearest listed MTN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MTN 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 MTN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.60%), the computed maximum profit is $510.21 per contract and the computed maximum loss is -$482.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MTN butterfly?: The breakeven for the MTN butterfly priced on this page is roughly $140.18 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 MTN market-implied 1-standard-deviation expected move is approximately 10.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MTN?: Butterflies on MTN are pinning bets - traders use them when they expect MTN 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 MTN implied volatility affect this butterfly?: MTN ATM IV is at 37.60% with IV rank near 25.55%, 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.