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 end-of-day chain at a 30-day expiry (ATM IV 157.00%), the computed maximum profit is $290.00 per contract and the computed maximum loss is -$210.00 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 $92.10 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 MXL market-implied 1-standard-deviation expected move is approximately 45.01%; 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 157.00% with IV rank near 83.25%, 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.

MXL Butterfly Strategy

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

MaxLinear, Inc. provides radiofrequency (RF), high-performance analog, and mixed-signal communications systems-on-chip solutions (SoCs) for the connected home, wired and wireless infrastructure, and industrial and multi-market applications worldwide. Its products integrate various portions of a high-speed communication system, including RF, high-performance analog, mixed-signal, digital signal processing, security engines, data compression, networking layers, and power management. The company offers broadband radio transceiver front ends, data converters, embedded systems and software architecture, and architecture and system design for highly integrated end-to-end communication platform solutions. Its products are used in various electronic devices, such as cable data over cable service interface specifications (DOCSIS), fiber and DSL broadband modems and gateways; Wi-Fi and wireline routers for home networking; radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; and fiber-optic modules for data center, metro, and long-haul transport networks, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers (OEMs), and original design manufacturers (ODMs) through a direct sales force, third-party sales representatives, and a network of distributors. The company was incorporated in 2003 and is headquartered in Carlsbad, California.

MXL (MaxLinear, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $7.86B, a beta of 3.96 versus the broader market, a 52-week range of 10.96-104.27, average daily share volume of 3.2M, 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 3.96 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.

Current MXL snapshot

As of May 15, 2026, spot at $92.59, ATM IV 157.00%, IV rank 83.25%, expected move 45.01%. The butterfly on MXL 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 34-day expiry.

Why this butterfly structure on MXL specifically: MXL IV at 157.00% is rich versus its 1-year range, which makes a premium-buying MXL butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 45.01% (roughly $41.68 on the underlying). The 34-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 $92.59 per share and to the trader's directional view on MXL stock.

MXL butterfly setup

The MXL 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 MXL near $92.59, the first option leg uses a $90.00 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 34-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	$90.00	$18.95
Sell 2	Call	$95.00	$16.85
Buy 1	Call	$95.00	$16.85

MXL butterfly risk and reward

Net Premium / Debit: -$210.00
Max Profit (per contract): $290.00
Max Loss (per contract): -$210.00
Breakeven(s): $92.10
Risk / Reward Ratio: 1.381

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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$210.00
$20.48	-77.9%	-$210.00
$40.95	-55.8%	-$210.00
$61.42	-33.7%	-$210.00
$81.89	-11.6%	-$210.00
$102.37	+10.6%	+$290.00
$122.84	+32.7%	+$290.00
$143.31	+54.8%	+$290.00
$163.78	+76.9%	+$290.00
$184.25	+99.0%	+$290.00

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 $50.91 on the downside to $134.27 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 83.25% 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 MXL at 157.00%. 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 trading near $92.59, the strikes shown on this page are snapped to the nearest listed MXL chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 157.00%), the computed maximum profit is $290.00 per contract and the computed maximum loss is -$210.00 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 $92.10 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 MXL market-implied 1-standard-deviation expected move is approximately 45.01%; 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 157.00% with IV rank near 83.25%, 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.