How are NPO 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 NPO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.00%), the computed maximum profit is $1,520.49 per contract and the computed maximum loss is -$455.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NPO butterfly?

The breakeven for the NPO butterfly priced on this page is roughly $354.55 and $385.45 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 NPO market-implied 1-standard-deviation expected move is approximately 11.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NPO implied volatility affect this butterfly?

NPO ATM IV is at 40.00% with IV rank near 35.65%, 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.

NPO Butterfly Strategy

NPO (EnPro Industries, Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.

EnPro Industries, Inc. is a global enterprise focused on the development, manufacturing, sales, and support of advanced industrial components. Its operations span the United States, Europe, and numerous other international regions. The company's business activities are structured into three primary divisions: Sealing Technologies, Advanced Surface Technologies, and Engineered Materials. The Sealing Technologies segment delivers a wide array of sealing solutions. These include hygienic seals, tubing, and complete assemblies for single-use applications; various gaskets fabricated from metallic, non-metallic, or composite materials; compression packing; hydraulic parts; expansion joints; and products for wall penetration. It also supplies an extensive selection of mechanical seals, such as dynamic, flange, resilient metal, elastomeric, and custom-designed types.

NPO (EnPro Industries, Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $8.01B, a trailing P/E of 184.39, a beta of 1.55 versus the broader market, a 52-week range of 189.31-390.42, average daily share volume of 268K, a public-listing history dating back to 2002, approximately 4K full-time employees. These structural characteristics shape how NPO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.55 indicates NPO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 184.39 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. NPO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on NPO?

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 NPO snapshot

As of June 29, 2026, spot at $372.11, ATM IV 40.00%, IV rank 35.65%, expected move 11.47%. The butterfly on NPO 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 18-day expiry.

Why this butterfly structure on NPO specifically: NPO IV at 40.00% 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 11.47% (roughly $42.67 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NPO expiries trade a higher absolute premium for lower per-day decay. Position sizing on NPO should anchor to the underlying notional of $372.11 per share and to the trader's directional view on NPO stock.

NPO butterfly setup

The NPO 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 NPO near $372.11, the first option leg uses a $350.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NPO chain at a 18-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 NPO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$350.00	$27.50
Sell 2	Call	$370.00	$14.30
Buy 1	Call	$390.00	$5.65

NPO butterfly risk and reward

Net Premium / Debit: -$455.00
Max Profit (per contract): $1,520.49
Max Loss (per contract): -$455.00
Breakeven(s): $354.55, $385.45
Risk / Reward Ratio: 3.342

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.

NPO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on NPO. 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%	-$455.00
$82.28	-77.9%	-$455.00
$164.56	-55.8%	-$455.00
$246.83	-33.7%	-$455.00
$329.11	-11.6%	-$455.00
$411.38	+10.6%	-$455.00
$493.66	+32.7%	-$455.00
$575.93	+54.8%	-$455.00
$658.21	+76.9%	-$455.00
$740.48	+99.0%	-$455.00

When traders use butterfly on NPO

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

NPO thesis for this butterfly

The market-implied 1-standard-deviation range for NPO extends from approximately $329.44 on the downside to $414.78 on the upside. A NPO long call butterfly is a pinning play: it pays maximum at the middle strike if NPO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NPO IV rank near 35.65% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on NPO should anchor more to the directional view and the expected-move geometry. As a Industrials name, NPO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NPO-specific events.

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

Frequently asked questions

What is a butterfly on NPO?: A butterfly on NPO is the butterfly strategy applied to NPO (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 NPO stock trading near $372.11, the strikes shown on this page are snapped to the nearest listed NPO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NPO 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 NPO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.00%), the computed maximum profit is $1,520.49 per contract and the computed maximum loss is -$455.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NPO butterfly?: The breakeven for the NPO butterfly priced on this page is roughly $354.55 and $385.45 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 NPO market-implied 1-standard-deviation expected move is approximately 11.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NPO?: Butterflies on NPO are pinning bets - traders use them when they expect NPO 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 NPO implied volatility affect this butterfly?: NPO ATM IV is at 40.00% with IV rank near 35.65%, 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.