How are NXPI 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 NXPI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.10%), the computed maximum profit is $1,237.05 per contract and the computed maximum loss is -$735.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NXPI butterfly?

The breakeven for the NXPI butterfly priced on this page is roughly $292.65 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 NXPI market-implied 1-standard-deviation expected move is approximately 16.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NXPI implied volatility affect this butterfly?

NXPI ATM IV is at 57.10% with IV rank near 73.76%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

NXPI Butterfly Strategy

NXPI (NXP Semiconductors N.V.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

NXP Semiconductors N.V. specializes in the design and production of a broad array of semiconductor solutions. Its extensive portfolio encompasses various processing units, such as microcontrollers, application processors (including the popular i.MX series and its 8 and 9 families), and communication processors. NXP also provides advanced wireless connectivity solutions, featuring technologies like near-field communication (NFC), ultra-wideband (UWB), Bluetooth Low Energy (BLE), Zigbee, and integrated Wi-Fi and Wi-Fi/Bluetooth Systems-on-Chip (SoCs). Furthermore, its offerings extend to analog and interface devices, radio frequency power amplifiers, and robust security controllers. The company also develops semiconductor-based environmental and inertial sensors, including components for pressure, motion (inertial), magnetic fields, and gyroscopic measurements. These solutions find critical applications across diverse sectors, including the automotive industry, industrial automation, the Internet of Things (IoT), mobile computing, and communication infrastructure.

NXPI (NXP Semiconductors N.V.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $69.94B, a trailing P/E of 26.39, a beta of 1.79 versus the broader market, a 52-week range of 183-339.95, average daily share volume of 4.0M, a public-listing history dating back to 2010, approximately 33K full-time employees. These structural characteristics shape how NXPI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.79 indicates NXPI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. NXPI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on NXPI?

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 NXPI snapshot

As of June 30, 2026, spot at $281.69, ATM IV 57.10%, IV rank 73.76%, expected move 16.37%. The butterfly on NXPI 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 17-day expiry.

Why this butterfly structure on NXPI specifically: NXPI IV at 57.10% is rich versus its 1-year range, which makes a premium-buying NXPI butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 16.37% (roughly $46.11 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NXPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on NXPI should anchor to the underlying notional of $281.69 per share and to the trader's directional view on NXPI stock.

NXPI butterfly setup

The NXPI 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 NXPI near $281.69, the first option leg uses a $270.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NXPI chain at a 17-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 NXPI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$270.00	$19.95
Sell 2	Call	$280.00	$14.75
Buy 1	Call	$300.00	$6.90

NXPI butterfly risk and reward

Net Premium / Debit: +$265.00
Max Profit (per contract): $1,237.05
Max Loss (per contract): -$735.00
Breakeven(s): $292.65
Risk / Reward Ratio: 1.683

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.

NXPI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on NXPI. 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%	+$265.00
$62.29	-77.9%	+$265.00
$124.57	-55.8%	+$265.00
$186.86	-33.7%	+$265.00
$249.14	-11.6%	+$265.00
$311.42	+10.6%	-$735.00
$373.70	+32.7%	-$735.00
$435.98	+54.8%	-$735.00
$498.27	+76.9%	-$735.00
$560.55	+99.0%	-$735.00

When traders use butterfly on NXPI

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

NXPI thesis for this butterfly

The market-implied 1-standard-deviation range for NXPI extends from approximately $235.58 on the downside to $327.80 on the upside. A NXPI long call butterfly is a pinning play: it pays maximum at the middle strike if NXPI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NXPI IV rank near 73.76% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on NXPI at 57.10%. As a Technology name, NXPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NXPI-specific events.

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

Frequently asked questions

What is a butterfly on NXPI?: A butterfly on NXPI is the butterfly strategy applied to NXPI (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 NXPI stock trading near $281.69, the strikes shown on this page are snapped to the nearest listed NXPI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NXPI 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 NXPI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.10%), the computed maximum profit is $1,237.05 per contract and the computed maximum loss is -$735.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NXPI butterfly?: The breakeven for the NXPI butterfly priced on this page is roughly $292.65 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 NXPI market-implied 1-standard-deviation expected move is approximately 16.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NXPI?: Butterflies on NXPI are pinning bets - traders use them when they expect NXPI 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 NXPI implied volatility affect this butterfly?: NXPI ATM IV is at 57.10% with IV rank near 73.76%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.