How are MXL 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 MXL butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 92.10%), the computed maximum profit is $406.99 per contract and the computed maximum loss is -$90.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MXL butterfly?

The breakeven for the MXL butterfly priced on this page is roughly $80.90 and $89.10 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 MXL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MXL implied volatility affect this butterfly?

MXL ATM IV is at 92.10% with IV rank near 33.47%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

MXL Butterfly Strategy

MXL (MaxLinear, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

MaxLinear, Inc. provides communications systems-on-chip solutions in the United States, Asia, Europe, and internationally. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management. Its products are used in various electronic devices, such as radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers; wi-fi and wireline routers for home networking; broadband modems compliant with data over cable service interface specifications, passive optical fiber standards, and digital subscriber line, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through a direct sales force, third-party sales representatives, and a network of distributors. The company has a strategic collaboration with Edgecore Networks Corporation for the development network infrastructure for enterprise and SMB applications. MaxLinear, Inc. has strategic partnership with GCT Semiconductor Holding, Inc. to develop 5G fixed wireless access (FWA) gateways and converged gateways for consumer and enterprise applications.

MXL (MaxLinear, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $6.74B, a beta of 3.98 versus the broader market, a 52-week range of 12.77-128.3, average daily share volume of 4.6M, a public-listing history dating back to 2010, approximately 1K full-time employees. These structural characteristics shape how MXL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.98 indicates MXL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on MXL?

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.

MXL snapshot

As of August 14, 2026, spot at $84.60, ATM IV 92.10%, IV rank 33.47%, expected move 26.40%. The butterfly on MXL 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 35-day expiry.

Why this butterfly structure on MXL specifically: MXL IV at 92.10% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 26.40% (roughly $22.34 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MXL expiries trade a higher absolute premium for lower per-day decay. Position sizing on MXL should anchor to the underlying notional of $84.60 per share and to the trader's directional view on MXL stock.

MXL butterfly setup

The MXL 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 MXL at $84.60 on that close, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MXL chain at a 35-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 MXL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$80.00	$12.05
Sell 2	Call	$85.00	$9.50
Buy 1	Call	$90.00	$7.85

MXL butterfly risk and reward

Net Premium / Debit: -$90.00
Max Profit (per contract): $406.99
Max Loss (per contract): -$90.00
Breakeven(s): $80.90, $89.10
Risk / Reward Ratio: 4.522

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.

MXL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MXL. 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%	-$90.00
$18.71	-77.9%	-$90.00
$37.42	-55.8%	-$90.00
$56.12	-33.7%	-$90.00
$74.83	-11.6%	-$90.00
$93.53	+10.6%	-$90.00
$112.24	+32.7%	-$90.00
$130.94	+54.8%	-$90.00
$149.65	+76.9%	-$90.00
$168.35	+99.0%	-$90.00

When traders use butterfly on MXL

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

MXL thesis for this butterfly

The market-implied 1-standard-deviation range for MXL extends from approximately $62.26 on the downside to $106.94 on the upside. A MXL long call butterfly is a pinning play: it pays maximum at the middle strike if MXL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MXL IV rank near 33.47% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on MXL should anchor more to the directional view and the expected-move geometry. As a Technology name, MXL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MXL-specific events.

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

Frequently asked questions

What is a butterfly on MXL?: A butterfly on MXL is the butterfly strategy applied to MXL (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 MXL stock at $84.60 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MXL chain strike and the premiums come straight from that session's bid/ask midpoint.
How are MXL 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 MXL butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 92.10%), the computed maximum profit is $406.99 per contract and the computed maximum loss is -$90.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MXL butterfly?: The breakeven for the MXL butterfly priced on this page is roughly $80.90 and $89.10 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 MXL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MXL?: Butterflies on MXL are pinning bets - traders use them when they expect MXL 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 MXL implied volatility affect this butterfly?: MXL ATM IV is at 92.10% with IV rank near 33.47%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.