How are OGN 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 OGN butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 217.60%), the computed maximum profit is $67.50 per contract and the computed maximum loss is -$32.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OGN butterfly?

The breakeven for the OGN butterfly priced on this page is roughly $13.33 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 OGN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 1.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OGN implied volatility affect this butterfly?

OGN ATM IV is at 217.60% with IV rank near 44.17%, 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.

OGN Butterfly Strategy

OGN (Organon & Co.), in the Healthcare sector, (Drug Manufacturers - General industry), listed on NYSE.

Organon & Co., a global pharmaceutical enterprise, is dedicated to developing and delivering a wide array of prescription therapies. Its women's health division features reproductive care products, encompassing birth control and fertility treatments, notably Nexplanon/Implanon, an extended-duration contraceptive. The company's biosimilars collection includes three immune-related medications (Brenzys, Renflexis, Hadlima) and two cancer therapies (Ontruzant, Aybintio). Additionally, Organon provides cardiovascular medications, such as cholesterol-reducing drugs (Zetia, Ezetrol, Vytorin, Inegy, Rosuzet, Zocor) and treatments for high blood pressure (Cozaar, Hyzaar). Their respiratory product line addresses asthma symptoms with brands like Singulair, Dulera, Zenhale, and Asmanex, and manages seasonal allergies through Singulair, Nasonex, Clarinex, and Aerius. Furthermore, their offerings extend to dermatological care (Diprosone, Elocon), bone strengthening (Fosamax), and non-narcotic pain relief (Arcoxia, Diprospan, Celestone).

OGN (Organon & Co.) trades in the Healthcare sector, specifically Drug Manufacturers - General, with a market capitalization of approximately $3.59B, a trailing P/E of 17.16, a beta of 1.52 versus the broader market, a 52-week range of 5.69-13.7, average daily share volume of 6.4M, a public-listing history dating back to 2021, approximately 10K full-time employees. These structural characteristics shape how OGN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.52 indicates OGN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. OGN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on OGN?

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.

OGN snapshot

As of August 14, 2026, spot at $13.71, ATM IV 217.60%, IV rank 44.17%, expected move 1.15%. The butterfly on OGN 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 63-day expiry.

Why this butterfly structure on OGN specifically: OGN IV at 217.60% 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 1.15% (roughly $0.16 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OGN expiries trade a higher absolute premium for lower per-day decay. Position sizing on OGN should anchor to the underlying notional of $13.71 per share and to the trader's directional view on OGN stock.

OGN butterfly setup

The OGN 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 OGN at $13.71 on that close, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OGN chain at a 63-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 OGN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$13.00	$0.63
Sell 2	Call	$14.00	$0.30
Buy 1	Call	$14.00	$0.30

OGN butterfly risk and reward

Net Premium / Debit: -$32.50
Max Profit (per contract): $67.50
Max Loss (per contract): -$32.50
Breakeven(s): $13.33
Risk / Reward Ratio: 2.077

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.

OGN butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on OGN. 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	-99.9%	-$32.50
$3.04	-77.8%	-$32.50
$6.07	-55.7%	-$32.50
$9.10	-33.6%	-$32.50
$12.13	-11.5%	-$32.50
$15.16	+10.6%	+$67.50
$18.19	+32.7%	+$67.50
$21.22	+54.8%	+$67.50
$24.25	+76.9%	+$67.50
$27.28	+99.0%	+$67.50

When traders use butterfly on OGN

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

OGN thesis for this butterfly

The market-implied 1-standard-deviation range for OGN extends from approximately $13.55 on the downside to $13.87 on the upside. A OGN long call butterfly is a pinning play: it pays maximum at the middle strike if OGN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OGN IV rank near 44.17% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on OGN should anchor more to the directional view and the expected-move geometry. As a Healthcare name, OGN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OGN-specific events.

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

Frequently asked questions

What is a butterfly on OGN?: A butterfly on OGN is the butterfly strategy applied to OGN (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 OGN stock at $13.71 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed OGN chain strike and the premiums come straight from that session's bid/ask midpoint.
How are OGN 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 OGN butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 217.60%), the computed maximum profit is $67.50 per contract and the computed maximum loss is -$32.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OGN butterfly?: The breakeven for the OGN butterfly priced on this page is roughly $13.33 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 OGN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 1.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on OGN?: Butterflies on OGN are pinning bets - traders use them when they expect OGN 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 OGN implied volatility affect this butterfly?: OGN ATM IV is at 217.60% with IV rank near 44.17%, 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.