How are NTNX 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 NTNX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 60.90%), the computed maximum profit is $310.12 per contract and the computed maximum loss is -$180.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NTNX butterfly?

The breakeven for the NTNX butterfly priced on this page is roughly $64.30 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 NTNX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NTNX implied volatility affect this butterfly?

NTNX ATM IV is at 60.90% with IV rank near 56.20%, 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.

NTNX Butterfly Strategy

NTNX (Nutanix, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.

Operating across North America, Europe, the Asia Pacific region, the Middle East, Latin America, and Africa, Nutanix, Inc. delivers an enterprise cloud platform. Its foundational Acropolis platform integrates virtualization, enterprise-grade storage, and comprehensive networking visualization and security capabilities. This includes the Acropolis Hypervisor, a robust virtualization solution. For cloud-native deployments, Nutanix Karbon automates the provisioning, operation, and lifecycle management of Kubernetes clusters, complemented by the Nutanix Clusters solution. Management tools include Prism Pro, Nutanix Beam for cloud governance, and Nutanix Calm, an application marketplace offering automation to streamline application lifecycle management and enable potent hybrid cloud orchestration. Their data services encompass Nutanix Files for enterprise-level NFS and SMB file services, Nutanix Objects providing S3-compatible object storage, and Nutanix Era for database automation and Database-as-a-Service (DBaaS).

NTNX (Nutanix, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $17.48B, a trailing P/E of 62.33, a beta of 0.60 versus the broader market, a 52-week range of 34.01-82.42, average daily share volume of 3.7M, a public-listing history dating back to 2016, approximately 8K full-time employees. These structural characteristics shape how NTNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.60 indicates NTNX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 62.33 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.

What is a butterfly on NTNX?

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.

NTNX snapshot

As of August 14, 2026, spot at $66.59, ATM IV 60.90%, IV rank 56.20%, expected move 17.46%. The butterfly on NTNX 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 35-day expiry.

Why this butterfly structure on NTNX specifically: NTNX IV at 60.90% 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 17.46% (roughly $11.63 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NTNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on NTNX should anchor to the underlying notional of $66.59 per share and to the trader's directional view on NTNX stock.

NTNX butterfly setup

The NTNX 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 NTNX at $66.59 on that close, the first option leg uses a $62.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NTNX chain at a 35-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 NTNX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$62.50	$7.35
Sell 2	Call	$67.50	$4.70
Buy 1	Call	$70.00	$3.85

NTNX butterfly risk and reward

Net Premium / Debit: -$180.00
Max Profit (per contract): $310.12
Max Loss (per contract): -$180.00
Breakeven(s): $64.30
Risk / Reward Ratio: 1.723

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.

NTNX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on NTNX. 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%	-$180.00
$14.73	-77.9%	-$180.00
$29.45	-55.8%	-$180.00
$44.18	-33.7%	-$180.00
$58.90	-11.5%	-$180.00
$73.62	+10.6%	+$70.00
$88.34	+32.7%	+$70.00
$103.07	+54.8%	+$70.00
$117.79	+76.9%	+$70.00
$132.51	+99.0%	+$70.00

When traders use butterfly on NTNX

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

NTNX thesis for this butterfly

The market-implied 1-standard-deviation range for NTNX extends from approximately $54.96 on the downside to $78.22 on the upside. A NTNX long call butterfly is a pinning play: it pays maximum at the middle strike if NTNX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NTNX IV rank near 56.20% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on NTNX should anchor more to the directional view and the expected-move geometry. As a Technology name, NTNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NTNX-specific events.

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

Frequently asked questions

What is a butterfly on NTNX?: A butterfly on NTNX is the butterfly strategy applied to NTNX (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 NTNX stock at $66.59 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NTNX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are NTNX 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 NTNX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 60.90%), the computed maximum profit is $310.12 per contract and the computed maximum loss is -$180.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NTNX butterfly?: The breakeven for the NTNX butterfly priced on this page is roughly $64.30 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 NTNX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NTNX?: Butterflies on NTNX are pinning bets - traders use them when they expect NTNX 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 NTNX implied volatility affect this butterfly?: NTNX ATM IV is at 60.90% with IV rank near 56.20%, 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.