How are NTRS 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 NTRS butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 23.10%), the computed maximum profit is $610.85 per contract and the computed maximum loss is -$310.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NTRS butterfly?

The breakeven for the NTRS butterfly priced on this page is roughly $183.10 and $196.90 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 NTRS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NTRS implied volatility affect this butterfly?

NTRS ATM IV is at 23.10% with IV rank near 19.54%, 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.

NTRS Butterfly Strategy

NTRS (Northern Trust Corporation), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

Northern Trust Corporation, a financial holding company established in 1889 and based in Chicago, Illinois, offers a comprehensive suite of wealth management, asset servicing, asset management, and banking solutions worldwide. Its diverse client base includes corporations, institutions, families, and individual investors. The company structures its operations across two primary segments: Asset Servicing and Wealth Management. The Asset Servicing division delivers a broad spectrum of support and operational services tailored for institutional entities. These services include custody, fund administration, outsourced investment operations, investment management, investment risk and analytical reporting, employee benefit services, securities lending, foreign exchange, treasury management, brokerage, transition management, and banking and cash management solutions. This segment serves corporate and public retirement funds, charitable foundations, endowments, investment managers, insurance companies, sovereign wealth funds, and other major institutional investors.

NTRS (Northern Trust Corporation) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $35.00B, a trailing P/E of 15.71, a beta of 1.26 versus the broader market, a 52-week range of 121.12-191.6, average daily share volume of 1.1M, a public-listing history dating back to 1980, approximately 24K full-time employees. These structural characteristics shape how NTRS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.26 places NTRS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NTRS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on NTRS?

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.

NTRS snapshot

As of August 14, 2026, spot at $191.75, ATM IV 23.10%, IV rank 19.54%, expected move 6.62%. The butterfly on NTRS 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 NTRS specifically: NTRS IV at 23.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a NTRS butterfly, with a market-implied 1-standard-deviation move of approximately 6.62% (roughly $12.70 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 NTRS expiries trade a higher absolute premium for lower per-day decay. Position sizing on NTRS should anchor to the underlying notional of $191.75 per share and to the trader's directional view on NTRS stock.

NTRS butterfly setup

The NTRS 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 NTRS at $191.75 on that close, the first option leg uses a $180.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NTRS 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 NTRS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$180.00	$12.95
Sell 2	Call	$190.00	$5.90
Buy 1	Call	$200.00	$1.95

NTRS butterfly risk and reward

Net Premium / Debit: -$310.00
Max Profit (per contract): $610.85
Max Loss (per contract): -$310.00
Breakeven(s): $183.10, $196.90
Risk / Reward Ratio: 1.970

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.

NTRS butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on NTRS. 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%	-$310.00
$42.41	-77.9%	-$310.00
$84.80	-55.8%	-$310.00
$127.20	-33.7%	-$310.00
$169.59	-11.6%	-$310.00
$211.99	+10.6%	-$310.00
$254.39	+32.7%	-$310.00
$296.78	+54.8%	-$310.00
$339.18	+76.9%	-$310.00
$381.57	+99.0%	-$310.00

When traders use butterfly on NTRS

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

NTRS thesis for this butterfly

The market-implied 1-standard-deviation range for NTRS extends from approximately $179.05 on the downside to $204.45 on the upside. A NTRS long call butterfly is a pinning play: it pays maximum at the middle strike if NTRS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NTRS IV rank near 19.54% 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 NTRS at 23.10%. As a Financial Services name, NTRS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NTRS-specific events.

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

Frequently asked questions

What is a butterfly on NTRS?: A butterfly on NTRS is the butterfly strategy applied to NTRS (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 NTRS stock at $191.75 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NTRS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are NTRS 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 NTRS butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 23.10%), the computed maximum profit is $610.85 per contract and the computed maximum loss is -$310.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NTRS butterfly?: The breakeven for the NTRS butterfly priced on this page is roughly $183.10 and $196.90 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 NTRS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NTRS?: Butterflies on NTRS are pinning bets - traders use them when they expect NTRS 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 NTRS implied volatility affect this butterfly?: NTRS ATM IV is at 23.10% with IV rank near 19.54%, 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.