How are NGVT 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 NGVT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is $247.43 per contract and the computed maximum loss is -$0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NGVT butterfly?

The breakeven for the NGVT butterfly priced on this page is roughly $70.20 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 NGVT market-implied 1-standard-deviation expected move is approximately 11.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NGVT implied volatility affect this butterfly?

NGVT ATM IV is at 38.90% with IV rank near 3.17%, 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.

NGVT Butterfly Strategy

NGVT (Ingevity Corporation), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NYSE.

Ingevity Corporation manufactures and sells specialty chemicals and activated carbon materials in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. The company operates through two segments, Performance Materials and Performance Chemicals. The Performance Materials segment engineers, manufactures, and sells hardwood-based and chemically activated carbon products primarily for use in gasoline vapor emission control systems in cars, motorcycles, trucks, and boats. This segment also produces other activated carbon products for use in various applications, including food, water, beverage, and chemical purification. The Performance Chemicals segment comprises of pavement technologies, industrial specialties, and engineered polymers. It manufactures products derived from crude tall oil and lignin extracted from the kraft pulping process, as well as caprolactone monomers and derivatives derived from cyclohexanone and hydrogen peroxide.

NGVT (Ingevity Corporation) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $2.48B, a beta of 1.24 versus the broader market, a 52-week range of 39.74-79.29, average daily share volume of 324K, a public-listing history dating back to 2016, approximately 2K full-time employees. These structural characteristics shape how NGVT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.24 places NGVT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on NGVT?

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 NGVT snapshot

As of May 15, 2026, spot at $67.81, ATM IV 38.90%, IV rank 3.17%, expected move 11.15%. The butterfly on NGVT 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 63-day expiry.

Why this butterfly structure on NGVT specifically: NGVT IV at 38.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a NGVT butterfly, with a market-implied 1-standard-deviation move of approximately 11.15% (roughly $7.56 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NGVT expiries trade a higher absolute premium for lower per-day decay. Position sizing on NGVT should anchor to the underlying notional of $67.81 per share and to the trader's directional view on NGVT stock.

NGVT butterfly setup

The NGVT 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 NGVT near $67.81, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NGVT chain at a 63-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 NGVT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$65.00	$5.55
Sell 2	Call	$67.50	$4.05
Buy 1	Call	$70.00	$2.55

NGVT butterfly risk and reward

Net Premium / Debit: +$0.00
Max Profit (per contract): $247.43
Max Loss (per contract): -$0.00
Breakeven(s): $70.20
Risk / Reward Ratio: 580,371,227,105,500.100

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.

NGVT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on NGVT. 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%	+$0.00
$15.00	-77.9%	+$0.00
$29.99	-55.8%	+$0.00
$44.99	-33.7%	+$0.00
$59.98	-11.5%	+$0.00
$74.97	+10.6%	+$0.00
$89.96	+32.7%	+$0.00
$104.95	+54.8%	+$0.00
$119.95	+76.9%	+$0.00
$134.94	+99.0%	+$0.00

When traders use butterfly on NGVT

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

NGVT thesis for this butterfly

The market-implied 1-standard-deviation range for NGVT extends from approximately $60.25 on the downside to $75.37 on the upside. A NGVT long call butterfly is a pinning play: it pays maximum at the middle strike if NGVT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NGVT IV rank near 3.17% 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 NGVT at 38.90%. As a Basic Materials name, NGVT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NGVT-specific events.

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

Frequently asked questions

What is a butterfly on NGVT?: A butterfly on NGVT is the butterfly strategy applied to NGVT (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 NGVT stock trading near $67.81, the strikes shown on this page are snapped to the nearest listed NGVT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NGVT 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 NGVT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is $247.43 per contract and the computed maximum loss is -$0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NGVT butterfly?: The breakeven for the NGVT butterfly priced on this page is roughly $70.20 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 NGVT market-implied 1-standard-deviation expected move is approximately 11.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NGVT?: Butterflies on NGVT are pinning bets - traders use them when they expect NGVT 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 NGVT implied volatility affect this butterfly?: NGVT ATM IV is at 38.90% with IV rank near 3.17%, 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.