How are ORLY 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 ORLY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is $283.52 per contract and the computed maximum loss is -$207.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ORLY butterfly?

The breakeven for the ORLY butterfly priced on this page is roughly $87.08 and $92.93 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 ORLY market-implied 1-standard-deviation expected move is approximately 6.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ORLY implied volatility affect this butterfly?

ORLY ATM IV is at 24.10% with IV rank near 5.43%, 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.

ORLY Butterfly Strategy

ORLY (O'Reilly Automotive, Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.

O'Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company provides new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories. Its stores offer auto body paint and related materials, automotive tools, and professional service provider service equipment. The company's stores also provide enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; and professional paint shop mixing and related materials. Its stores offer do-it-yourself and professional service provider customers a selection of products for domestic and imported automobiles, vans, and trucks. As of December 31, 2021, the company owned and operated 5,759 stores in the United States, and 25 stores in Mexico.

ORLY (O'Reilly Automotive, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $74.34B, a trailing P/E of 28.89, a beta of 0.58 versus the broader market, a 52-week range of 86.77-108.72, average daily share volume of 5.6M, a public-listing history dating back to 1993, approximately 93K full-time employees. These structural characteristics shape how ORLY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.58 indicates ORLY 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 ORLY?

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 ORLY snapshot

As of May 15, 2026, spot at $88.57, ATM IV 24.10%, IV rank 5.43%, expected move 6.91%. The butterfly on ORLY 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 ORLY specifically: ORLY IV at 24.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a ORLY butterfly, with a market-implied 1-standard-deviation move of approximately 6.91% (roughly $6.12 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 ORLY expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORLY should anchor to the underlying notional of $88.57 per share and to the trader's directional view on ORLY stock.

ORLY butterfly setup

The ORLY 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 ORLY near $88.57, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORLY 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 ORLY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$85.00	$5.55
Sell 2	Call	$90.00	$2.03
Buy 1	Call	$95.00	$0.58

ORLY butterfly risk and reward

Net Premium / Debit: -$207.50
Max Profit (per contract): $283.52
Max Loss (per contract): -$207.50
Breakeven(s): $87.08, $92.93
Risk / Reward Ratio: 1.366

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.

ORLY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ORLY. 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%	-$207.50
$19.59	-77.9%	-$207.50
$39.17	-55.8%	-$207.50
$58.76	-33.7%	-$207.50
$78.34	-11.6%	-$207.50
$97.92	+10.6%	-$207.50
$117.50	+32.7%	-$207.50
$137.09	+54.8%	-$207.50
$156.67	+76.9%	-$207.50
$176.25	+99.0%	-$207.50

When traders use butterfly on ORLY

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

ORLY thesis for this butterfly

The market-implied 1-standard-deviation range for ORLY extends from approximately $82.45 on the downside to $94.69 on the upside. A ORLY long call butterfly is a pinning play: it pays maximum at the middle strike if ORLY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ORLY IV rank near 5.43% 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 ORLY at 24.10%. As a Consumer Cyclical name, ORLY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORLY-specific events.

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

Frequently asked questions

What is a butterfly on ORLY?: A butterfly on ORLY is the butterfly strategy applied to ORLY (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 ORLY stock trading near $88.57, the strikes shown on this page are snapped to the nearest listed ORLY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ORLY 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 ORLY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is $283.52 per contract and the computed maximum loss is -$207.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ORLY butterfly?: The breakeven for the ORLY butterfly priced on this page is roughly $87.08 and $92.93 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 ORLY market-implied 1-standard-deviation expected move is approximately 6.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ORLY?: Butterflies on ORLY are pinning bets - traders use them when they expect ORLY 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 ORLY implied volatility affect this butterfly?: ORLY ATM IV is at 24.10% with IV rank near 5.43%, 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.