How are ODFL 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 ODFL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.10%), the computed maximum profit is $544.52 per contract and the computed maximum loss is -$360.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ODFL butterfly?

The breakeven for the ODFL butterfly priced on this page is roughly $206.40 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 ODFL market-implied 1-standard-deviation expected move is approximately 12.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ODFL implied volatility affect this butterfly?

ODFL ATM IV is at 43.10% with IV rank near 50.35%, 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.

ODFL Butterfly Strategy

ODFL (Old Dominion Freight Line, Inc.), in the Industrials sector, (Trucking industry), listed on NASDAQ.

Old Dominion Freight Line, Inc. operates as a less-than-truckload (LTL) motor carrier in the United States and North America. It provides regional, inter-regional, and national LTL services, including expedited transportation. The company also offers various value-added services, such as container drayage, truckload brokerage, and supply chain consulting. As of December 31, 2021, it owned and operated 10,403 tractors, 27,917 linehaul trailers, and 13,303 pickup and delivery trailers; 3 fleet maintenance centers; and 251 service centers. Old Dominion Freight Line, Inc. was founded in 1934 and is headquartered in Thomasville, North Carolina.

ODFL (Old Dominion Freight Line, Inc.) trades in the Industrials sector, specifically Trucking, with a market capitalization of approximately $39.34B, a trailing P/E of 39.12, a beta of 1.17 versus the broader market, a 52-week range of 126.01-233.79, average daily share volume of 2.2M, a public-listing history dating back to 1991, approximately 22K full-time employees. These structural characteristics shape how ODFL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.17 places ODFL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 39.12 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. ODFL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ODFL?

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 ODFL snapshot

As of May 15, 2026, spot at $204.17, ATM IV 43.10%, IV rank 50.35%, expected move 12.36%. The butterfly on ODFL 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 ODFL specifically: ODFL IV at 43.10% 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 12.36% (roughly $25.23 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 ODFL expiries trade a higher absolute premium for lower per-day decay. Position sizing on ODFL should anchor to the underlying notional of $204.17 per share and to the trader's directional view on ODFL stock.

ODFL butterfly setup

The ODFL 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 ODFL near $204.17, the first option leg uses a $195.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ODFL 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 ODFL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$195.00	$15.55
Sell 2	Call	$200.00	$12.50
Buy 1	Call	$210.00	$8.05

ODFL butterfly risk and reward

Net Premium / Debit: +$140.00
Max Profit (per contract): $544.52
Max Loss (per contract): -$360.00
Breakeven(s): $206.40
Risk / Reward Ratio: 1.513

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.

ODFL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ODFL. 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%	+$140.00
$45.15	-77.9%	+$140.00
$90.29	-55.8%	+$140.00
$135.44	-33.7%	+$140.00
$180.58	-11.6%	+$140.00
$225.72	+10.6%	-$360.00
$270.86	+32.7%	-$360.00
$316.00	+54.8%	-$360.00
$361.15	+76.9%	-$360.00
$406.29	+99.0%	-$360.00

When traders use butterfly on ODFL

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

ODFL thesis for this butterfly

The market-implied 1-standard-deviation range for ODFL extends from approximately $178.94 on the downside to $229.40 on the upside. A ODFL long call butterfly is a pinning play: it pays maximum at the middle strike if ODFL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ODFL IV rank near 50.35% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ODFL should anchor more to the directional view and the expected-move geometry. As a Industrials name, ODFL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ODFL-specific events.

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

Frequently asked questions

What is a butterfly on ODFL?: A butterfly on ODFL is the butterfly strategy applied to ODFL (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 ODFL stock trading near $204.17, the strikes shown on this page are snapped to the nearest listed ODFL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ODFL 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 ODFL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.10%), the computed maximum profit is $544.52 per contract and the computed maximum loss is -$360.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ODFL butterfly?: The breakeven for the ODFL butterfly priced on this page is roughly $206.40 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 ODFL market-implied 1-standard-deviation expected move is approximately 12.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ODFL?: Butterflies on ODFL are pinning bets - traders use them when they expect ODFL 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 ODFL implied volatility affect this butterfly?: ODFL ATM IV is at 43.10% with IV rank near 50.35%, 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.