How are OI 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 OI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 56.80%), the computed maximum profit is $50.00 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OI butterfly?

The breakeven for the OI butterfly priced on this page is roughly $9.50 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 OI market-implied 1-standard-deviation expected move is approximately 16.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OI implied volatility affect this butterfly?

OI ATM IV is at 56.80% with IV rank near 67.51%, 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.

OI Butterfly Strategy

OI (O-I Glass, Inc.), in the Consumer Cyclical sector, (Packaging & Containers industry), listed on NYSE.

O-I Glass, Inc., through its various subsidiaries, is dedicated to the manufacturing and global distribution of glass packaging. The company primarily furnishes glass containers to businesses in the food and beverage industries across the Americas, Europe, and the Asia Pacific regions. Their product offerings encompass glass bottles and jars specifically designed for alcoholic beverages, such as beer, spirits, wine, and flavored malt beverages. Additionally, they provide glass packaging solutions for a range of other products, including various food items, soft drinks, teas, juices, and pharmaceutical goods. O-I Glass ensures a comprehensive selection of glass containers, available in diverse sizes, unique shapes, and a wide spectrum of colors to meet client specifications. The company facilitates sales directly to its customers, often secured through multi-year supply contracts, and also leverages a network of distributors.

OI (O-I Glass, Inc.) trades in the Consumer Cyclical sector, specifically Packaging & Containers, with a market capitalization of approximately $1.49B, a beta of 0.65 versus the broader market, a 52-week range of 7.75-16.91, average daily share volume of 2.8M, a public-listing history dating back to 1991, approximately 21K full-time employees. These structural characteristics shape how OI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.65 indicates OI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a butterfly on OI?

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 OI snapshot

As of June 29, 2026, spot at $9.59, ATM IV 56.80%, IV rank 67.51%, expected move 16.28%. The butterfly on OI 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 53-day expiry.

Why this butterfly structure on OI specifically: OI IV at 56.80% 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 16.28% (roughly $1.56 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OI expiries trade a higher absolute premium for lower per-day decay. Position sizing on OI should anchor to the underlying notional of $9.59 per share and to the trader's directional view on OI stock.

OI butterfly setup

The OI 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 OI near $9.59, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OI chain at a 53-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 OI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$9.00	$1.15
Sell 2	Call	$10.00	$0.65
Buy 1	Call	$10.00	$0.65

OI butterfly risk and reward

Net Premium / Debit: -$50.00
Max Profit (per contract): $50.00
Max Loss (per contract): -$50.00
Breakeven(s): $9.50
Risk / Reward Ratio: 1.000

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.

OI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on OI. 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%	-$50.00
$2.13	-77.8%	-$50.00
$4.25	-55.7%	-$50.00
$6.37	-33.6%	-$50.00
$8.49	-11.5%	-$50.00
$10.61	+10.6%	+$50.00
$12.73	+32.7%	+$50.00
$14.85	+54.8%	+$50.00
$16.96	+76.9%	+$50.00
$19.08	+99.0%	+$50.00

When traders use butterfly on OI

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

OI thesis for this butterfly

The market-implied 1-standard-deviation range for OI extends from approximately $8.03 on the downside to $11.15 on the upside. A OI long call butterfly is a pinning play: it pays maximum at the middle strike if OI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OI IV rank near 67.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on OI should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, OI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OI-specific events.

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

Frequently asked questions

What is a butterfly on OI?: A butterfly on OI is the butterfly strategy applied to OI (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 OI stock trading near $9.59, the strikes shown on this page are snapped to the nearest listed OI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OI 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 OI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 56.80%), the computed maximum profit is $50.00 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OI butterfly?: The breakeven for the OI butterfly priced on this page is roughly $9.50 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 OI market-implied 1-standard-deviation expected move is approximately 16.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on OI?: Butterflies on OI are pinning bets - traders use them when they expect OI 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 OI implied volatility affect this butterfly?: OI ATM IV is at 56.80% with IV rank near 67.51%, 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.