How are ORCL 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 ORCL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.97%), the computed maximum profit is $616.36 per contract and the computed maximum loss is -$105.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ORCL butterfly?

The breakeven for the ORCL butterfly priced on this page is roughly $143.42 and $156.49 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 ORCL market-implied 1-standard-deviation expected move is approximately 15.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ORCL implied volatility affect this butterfly?

ORCL ATM IV is at 53.97% with IV rank near 45.09%, 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.

ORCL Butterfly Strategy

ORCL (Oracle Corporation), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.

Oracle Corporation, a global technology giant, provides a comprehensive suite of enterprise information technology solutions worldwide. A core part of its portfolio comprises cloud-based software-as-a-service (SaaS) applications, including the Oracle Fusion Cloud suite covering enterprise resource planning (ERP), enterprise performance management (EPM), supply chain and manufacturing management (SCM), and human capital management (HCM). This also extends to specialized offerings like Oracle Advertising, the NetSuite application suite, and Oracle Fusion solutions for Sales, Service, and Marketing. Beyond these, Oracle develops cloud solutions tailored for various specific industries, alongside traditional application licenses and comprehensive license support services. Furthermore, the company's robust cloud and licensing business is underpinned by its infrastructure technologies. These include the flagship Oracle Database, the widely adopted Java programming language, and various middleware components such as development tools.

ORCL (Oracle Corporation) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $428.27B, a trailing P/E of 25.04, a beta of 1.66 versus the broader market, a 52-week range of 134.57-345.72, average daily share volume of 29.6M, a public-listing history dating back to 1986, approximately 159K full-time employees. These structural characteristics shape how ORCL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.66 indicates ORCL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ORCL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ORCL?

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 ORCL snapshot

As of June 26, 2026, spot at $149.53, ATM IV 53.97%, IV rank 45.09%, expected move 15.47%. The butterfly on ORCL 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 32-day expiry.

Why this butterfly structure on ORCL specifically: ORCL IV at 53.97% 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 15.47% (roughly $23.13 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ORCL expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORCL should anchor to the underlying notional of $149.53 per share and to the trader's directional view on ORCL stock.

ORCL butterfly setup

The ORCL 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 ORCL near $149.53, the first option leg uses a $143.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORCL chain at a 32-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 ORCL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$143.00	$12.88
Sell 2	Call	$150.00	$9.38
Buy 1	Call	$157.50	$6.43

ORCL butterfly risk and reward

Net Premium / Debit: -$55.00
Max Profit (per contract): $616.36
Max Loss (per contract): -$105.00
Breakeven(s): $143.42, $156.49
Risk / Reward Ratio: 5.870

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.

ORCL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ORCL. 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%	-$55.00
$33.07	-77.9%	-$55.00
$66.13	-55.8%	-$55.00
$99.19	-33.7%	-$55.00
$132.25	-11.6%	-$55.00
$165.31	+10.6%	-$105.00
$198.37	+32.7%	-$105.00
$231.44	+54.8%	-$105.00
$264.50	+76.9%	-$105.00
$297.56	+99.0%	-$105.00

When traders use butterfly on ORCL

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

ORCL thesis for this butterfly

The market-implied 1-standard-deviation range for ORCL extends from approximately $126.40 on the downside to $172.66 on the upside. A ORCL long call butterfly is a pinning play: it pays maximum at the middle strike if ORCL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ORCL IV rank near 45.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ORCL should anchor more to the directional view and the expected-move geometry. As a Technology name, ORCL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORCL-specific events.

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

Frequently asked questions

What is a butterfly on ORCL?: A butterfly on ORCL is the butterfly strategy applied to ORCL (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 ORCL stock trading near $149.53, the strikes shown on this page are snapped to the nearest listed ORCL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ORCL 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 ORCL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.97%), the computed maximum profit is $616.36 per contract and the computed maximum loss is -$105.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ORCL butterfly?: The breakeven for the ORCL butterfly priced on this page is roughly $143.42 and $156.49 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 ORCL market-implied 1-standard-deviation expected move is approximately 15.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ORCL?: Butterflies on ORCL are pinning bets - traders use them when they expect ORCL 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 ORCL implied volatility affect this butterfly?: ORCL ATM IV is at 53.97% with IV rank near 45.09%, 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.