How are NTGR 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 NTGR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 54.00%), the computed maximum profit is $80.41 per contract and the computed maximum loss is -$12.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NTGR butterfly?

The breakeven for the NTGR butterfly priced on this page is roughly $24.10 and $25.88 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 NTGR market-implied 1-standard-deviation expected move is approximately 15.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NTGR implied volatility affect this butterfly?

NTGR ATM IV is at 54.00% with IV rank near 31.63%, 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.

NTGR Butterfly Strategy

NTGR (NETGEAR, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.

NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The company operates in two segments, Connected Home, and Small and Medium Business. It offers smart home/connected home/broadband access products, such as Wi-Fi routers and home Wi-Fi systems, broadband modems, Wi-Fi gateways, Wi-Fi hotspots, Wi-Fi range extenders, Powerline adapters and bridges, Wi-Fi network adapters, and digital canvasses; and value-added service offerings, including technical support, parental controls, and cybersecurity protection. The company also provides Ethernet switches, Wi-Fi mesh systems and access points, local and remote unified storage products, and Internet security appliances for small and medium-sized businesses, as well as education, hospitality and health markets. It markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store at www.netgear.com. in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 1996 and is headquartered in San Jose, California.

NTGR (NETGEAR, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $689.2M, a beta of 1.18 versus the broader market, a 52-week range of 19-36.86, average daily share volume of 528K, a public-listing history dating back to 2003, approximately 636 full-time employees. These structural characteristics shape how NTGR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.18 places NTGR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on NTGR?

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 NTGR snapshot

As of May 15, 2026, spot at $25.05, ATM IV 54.00%, IV rank 31.63%, expected move 15.48%. The butterfly on NTGR 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 NTGR specifically: NTGR IV at 54.00% 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 15.48% (roughly $3.88 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 NTGR expiries trade a higher absolute premium for lower per-day decay. Position sizing on NTGR should anchor to the underlying notional of $25.05 per share and to the trader's directional view on NTGR stock.

NTGR butterfly setup

The NTGR 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 NTGR near $25.05, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NTGR 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 NTGR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$24.00	$2.23
Sell 2	Call	$25.00	$1.68
Buy 1	Call	$26.00	$1.25

NTGR butterfly risk and reward

Net Premium / Debit: -$12.50
Max Profit (per contract): $80.41
Max Loss (per contract): -$12.50
Breakeven(s): $24.10, $25.88
Risk / Reward Ratio: 6.433

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.

NTGR butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on NTGR. 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%	-$12.50
$5.55	-77.9%	-$12.50
$11.09	-55.7%	-$12.50
$16.62	-33.6%	-$12.50
$22.16	-11.5%	-$12.50
$27.70	+10.6%	-$12.50
$33.24	+32.7%	-$12.50
$38.77	+54.8%	-$12.50
$44.31	+76.9%	-$12.50
$49.85	+99.0%	-$12.50

When traders use butterfly on NTGR

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

NTGR thesis for this butterfly

The market-implied 1-standard-deviation range for NTGR extends from approximately $21.17 on the downside to $28.93 on the upside. A NTGR long call butterfly is a pinning play: it pays maximum at the middle strike if NTGR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NTGR IV rank near 31.63% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on NTGR should anchor more to the directional view and the expected-move geometry. As a Technology name, NTGR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NTGR-specific events.

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

Frequently asked questions

What is a butterfly on NTGR?: A butterfly on NTGR is the butterfly strategy applied to NTGR (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 NTGR stock trading near $25.05, the strikes shown on this page are snapped to the nearest listed NTGR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NTGR 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 NTGR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 54.00%), the computed maximum profit is $80.41 per contract and the computed maximum loss is -$12.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NTGR butterfly?: The breakeven for the NTGR butterfly priced on this page is roughly $24.10 and $25.88 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 NTGR market-implied 1-standard-deviation expected move is approximately 15.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NTGR?: Butterflies on NTGR are pinning bets - traders use them when they expect NTGR 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 NTGR implied volatility affect this butterfly?: NTGR ATM IV is at 54.00% with IV rank near 31.63%, 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.