How are OSIS 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 OSIS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 48.90%), the computed maximum profit is $983.75 per contract and the computed maximum loss is -$475.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OSIS butterfly?

The breakeven for the OSIS butterfly priced on this page is roughly $199.75 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 OSIS market-implied 1-standard-deviation expected move is approximately 14.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OSIS implied volatility affect this butterfly?

OSIS ATM IV is at 48.90% with IV rank near 53.49%, 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.

OSIS Butterfly Strategy

OSIS (OSI Systems, Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.

OSI Systems, Inc. designs and manufactures electronic systems and components worldwide. It operates in three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The Security segment offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation detection, and explosive and narcotics trace detection systems under the Rapiscan Systems, AS&E, and Gatekeeper names. It also provides site design, installation, training, and technical support services; and security screening solutions under the S2 name. The Healthcare segment offers patient monitoring and diagnostic cardiology systems, and related supplies and accessories under the Spacelabs name for use in critical care, emergency, and perioperative areas within hospitals, physicians' offices, medical clinics, and ambulatory surgery centers. The Optoelectronics and Manufacturing segment provides optoelectronic devices under the OSI Optoelectronics, OSI LaserDiode, OSI Laserscan, Semicoa, and Advanced Photonix names for the aerospace and defense, avionics, medical imaging and diagnostics, biochemistry analysis, pharmaceutical, nanotechnology, telecommunications, construction, and homeland security markets.

OSIS (OSI Systems, Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $3.60B, a trailing P/E of 23.65, a beta of 1.31 versus the broader market, a 52-week range of 204-311.72, average daily share volume of 296K, a public-listing history dating back to 1997, approximately 7K full-time employees. These structural characteristics shape how OSIS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.31 indicates OSIS 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 OSIS?

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 OSIS snapshot

As of May 15, 2026, spot at $206.47, ATM IV 48.90%, IV rank 53.49%, expected move 14.02%. The butterfly on OSIS 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 OSIS specifically: OSIS IV at 48.90% 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 14.02% (roughly $28.95 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 OSIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on OSIS should anchor to the underlying notional of $206.47 per share and to the trader's directional view on OSIS stock.

OSIS butterfly setup

The OSIS 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 OSIS near $206.47, the first option leg uses a $195.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OSIS 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 OSIS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$195.00	$19.60
Sell 2	Call	$210.00	$11.10
Buy 1	Call	$220.00	$7.35

OSIS butterfly risk and reward

Net Premium / Debit: -$475.00
Max Profit (per contract): $983.75
Max Loss (per contract): -$475.00
Breakeven(s): $199.75
Risk / Reward Ratio: 2.071

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.

OSIS butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on OSIS. 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%	-$475.00
$45.66	-77.9%	-$475.00
$91.31	-55.8%	-$475.00
$136.96	-33.7%	-$475.00
$182.61	-11.6%	-$475.00
$228.26	+10.6%	+$25.00
$273.91	+32.7%	+$25.00
$319.56	+54.8%	+$25.00
$365.21	+76.9%	+$25.00
$410.86	+99.0%	+$25.00

When traders use butterfly on OSIS

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

OSIS thesis for this butterfly

The market-implied 1-standard-deviation range for OSIS extends from approximately $177.52 on the downside to $235.42 on the upside. A OSIS long call butterfly is a pinning play: it pays maximum at the middle strike if OSIS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OSIS IV rank near 53.49% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on OSIS should anchor more to the directional view and the expected-move geometry. As a Technology name, OSIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OSIS-specific events.

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

Frequently asked questions

What is a butterfly on OSIS?: A butterfly on OSIS is the butterfly strategy applied to OSIS (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 OSIS stock trading near $206.47, the strikes shown on this page are snapped to the nearest listed OSIS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OSIS 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 OSIS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 48.90%), the computed maximum profit is $983.75 per contract and the computed maximum loss is -$475.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OSIS butterfly?: The breakeven for the OSIS butterfly priced on this page is roughly $199.75 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 OSIS market-implied 1-standard-deviation expected move is approximately 14.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on OSIS?: Butterflies on OSIS are pinning bets - traders use them when they expect OSIS 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 OSIS implied volatility affect this butterfly?: OSIS ATM IV is at 48.90% with IV rank near 53.49%, 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.