How are ONON 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 ONON butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.54%), the computed maximum profit is $112.70 per contract and the computed maximum loss is -$79.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ONON butterfly?

The breakeven for the ONON butterfly priced on this page is roughly $33.21 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 ONON market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ONON implied volatility affect this butterfly?

ONON ATM IV is at 37.54% with IV rank near 3.67%, 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.

ONON Butterfly Strategy

ONON (On Holding AG), in the Consumer Cyclical sector, (Apparel - Footwear & Accessories industry), listed on NYSE.

On Holding AG, together with its subsidiaries, develops and distributes performance sports products under the On brand in Switzerland, the rest of Europe, the Middle East, Africa, the United States, the rest of the Americas, and the Asia-Pacific. The company offers athletic footwear, apparel, and accessories for performance running, performance outdoor, performance all day, performance training, performance tennis, and young movers. It sells its products to athletes and active customers through wholesale and direct-to-consumer channels; run specialty, general sporting goods, outdoor, luxury, street fashion, and lifestyle retailers; owned retail stores; and e-commerce platforms. On Holding AG was founded in 2010 and is headquartered in Zurich, Switzerland.

ONON (On Holding AG) trades in the Consumer Cyclical sector, specifically Apparel - Footwear & Accessories, with a market capitalization of approximately $10.34B, a trailing P/E of 33.19, a beta of 2.12 versus the broader market, a 52-week range of 30.112-51.08, average daily share volume of 5.5M, a public-listing history dating back to 2021, approximately 4K full-time employees. These structural characteristics shape how ONON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.12 indicates ONON has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on ONON?

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.

ONON snapshot

As of August 14, 2026, spot at $32.24, ATM IV 37.54%, IV rank 3.67%, expected move 10.76%. The butterfly on ONON 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 28-day expiry.

Why this butterfly structure on ONON specifically: ONON IV at 37.54% is on the cheap side of its 1-year range, which favors premium-buying structures like a ONON butterfly, with a market-implied 1-standard-deviation move of approximately 10.76% (roughly $3.47 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ONON expiries trade a higher absolute premium for lower per-day decay. Position sizing on ONON should anchor to the underlying notional of $32.24 per share and to the trader's directional view on ONON stock.

ONON butterfly setup

The ONON 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 ONON at $32.24 on that close, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ONON chain at a 28-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 ONON shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$31.00	$2.12
Sell 2	Call	$32.00	$1.53
Buy 1	Call	$34.00	$0.74

ONON butterfly risk and reward

Net Premium / Debit: +$21.00
Max Profit (per contract): $112.70
Max Loss (per contract): -$79.00
Breakeven(s): $33.21
Risk / Reward Ratio: 1.427

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.

ONON butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ONON. 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%	+$21.00
$7.14	-77.9%	+$21.00
$14.26	-55.8%	+$21.00
$21.39	-33.6%	+$21.00
$28.52	-11.5%	+$21.00
$35.65	+10.6%	-$79.00
$42.77	+32.7%	-$79.00
$49.90	+54.8%	-$79.00
$57.03	+76.9%	-$79.00
$64.16	+99.0%	-$79.00

When traders use butterfly on ONON

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

ONON thesis for this butterfly

The market-implied 1-standard-deviation range for ONON extends from approximately $28.77 on the downside to $35.71 on the upside. A ONON long call butterfly is a pinning play: it pays maximum at the middle strike if ONON settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ONON IV rank near 3.67% 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 ONON at 37.54%. As a Consumer Cyclical name, ONON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ONON-specific events.

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

Frequently asked questions

What is a butterfly on ONON?: A butterfly on ONON is the butterfly strategy applied to ONON (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 ONON stock at $32.24 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ONON chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ONON 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 ONON butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.54%), the computed maximum profit is $112.70 per contract and the computed maximum loss is -$79.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ONON butterfly?: The breakeven for the ONON butterfly priced on this page is roughly $33.21 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 ONON market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ONON?: Butterflies on ONON are pinning bets - traders use them when they expect ONON 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 ONON implied volatility affect this butterfly?: ONON ATM IV is at 37.54% with IV rank near 3.67%, 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.