How are NKE 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 NKE butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.67%), the computed maximum profit is $142.97 per contract and the computed maximum loss is -$53.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NKE butterfly?

The breakeven for the NKE butterfly priced on this page is roughly $39.53 and $42.47 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 NKE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NKE implied volatility affect this butterfly?

NKE ATM IV is at 31.67% with IV rank near 20.92%, 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.

NKE Butterfly Strategy

NKE (NIKE, Inc.), in the Consumer Cyclical sector, (Apparel - Footwear & Accessories industry), listed on NYSE.

NIKE, Inc., through its various subsidiaries, operates as a global enterprise focused on the design, development, marketing, and sale of athletic footwear, apparel, equipment, and accessories for all ages and genders. Beyond its primary offerings, the company provides a range of athletic and casual footwear, clothing, and accessories under the notable Jumpman trademark. It also distributes a variety of casual sneakers, apparel, and accessories, featuring well-known brands like Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell. Under the NIKE brand itself, the company supplies a comprehensive line of performance sports gear and accessories, such as bags, socks, sports balls, eyewear, timepieces, digital devices, bats, gloves, and protective equipment. Additionally, NIKE sells various plastic products to other manufacturers. The company also markets sportswear adorned with licensed logos from college and professional sports teams and leagues.

NKE (NIKE, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Footwear & Accessories, with a market capitalization of approximately $60.27B, a trailing P/E of 19.43, a beta of 1.12 versus the broader market, a 52-week range of 40-80.17, average daily share volume of 22.8M, a public-listing history dating back to 1980, approximately 73K full-time employees. These structural characteristics shape how NKE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.12 places NKE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NKE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on NKE?

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.

NKE snapshot

As of August 14, 2026, spot at $40.75, ATM IV 31.67%, IV rank 20.92%, expected move 9.08%. The butterfly on NKE 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 28-day expiry.

Why this butterfly structure on NKE specifically: NKE IV at 31.67% is on the cheap side of its 1-year range, which favors premium-buying structures like a NKE butterfly, with a market-implied 1-standard-deviation move of approximately 9.08% (roughly $3.70 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NKE expiries trade a higher absolute premium for lower per-day decay. Position sizing on NKE should anchor to the underlying notional of $40.75 per share and to the trader's directional view on NKE stock.

NKE butterfly setup

The NKE 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 NKE at $40.75 on that close, the first option leg uses a $39.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NKE chain at a 28-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 NKE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$39.00	$2.44
Sell 2	Call	$41.00	$1.23
Buy 1	Call	$43.00	$0.54

NKE butterfly risk and reward

Net Premium / Debit: -$53.00
Max Profit (per contract): $142.97
Max Loss (per contract): -$53.00
Breakeven(s): $39.53, $42.47
Risk / Reward Ratio: 2.698

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.

NKE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on NKE. 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%	-$53.00
$9.02	-77.9%	-$53.00
$18.03	-55.8%	-$53.00
$27.04	-33.7%	-$53.00
$36.05	-11.5%	-$53.00
$45.05	+10.6%	-$53.00
$54.06	+32.7%	-$53.00
$63.07	+54.8%	-$53.00
$72.08	+76.9%	-$53.00
$81.09	+99.0%	-$53.00

When traders use butterfly on NKE

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

NKE thesis for this butterfly

The market-implied 1-standard-deviation range for NKE extends from approximately $37.05 on the downside to $44.45 on the upside. A NKE long call butterfly is a pinning play: it pays maximum at the middle strike if NKE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NKE IV rank near 20.92% 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 NKE at 31.67%. As a Consumer Cyclical name, NKE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NKE-specific events.

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

Frequently asked questions

What is a butterfly on NKE?: A butterfly on NKE is the butterfly strategy applied to NKE (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 NKE stock at $40.75 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NKE chain strike and the premiums come straight from that session's bid/ask midpoint.
How are NKE 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 NKE butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.67%), the computed maximum profit is $142.97 per contract and the computed maximum loss is -$53.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NKE butterfly?: The breakeven for the NKE butterfly priced on this page is roughly $39.53 and $42.47 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 NKE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NKE?: Butterflies on NKE are pinning bets - traders use them when they expect NKE 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 NKE implied volatility affect this butterfly?: NKE ATM IV is at 31.67% with IV rank near 20.92%, 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.