How are OUST 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 OUST butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 103.33%), the computed maximum profit is $155.88 per contract and the computed maximum loss is -$20.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OUST butterfly?

The breakeven for the OUST butterfly priced on this page is roughly $47.14 and $50.86 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 OUST market-implied 1-standard-deviation expected move in the same options snapshot is approximately 29.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OUST implied volatility affect this butterfly?

OUST ATM IV is at 103.33% with IV rank near 38.26%, 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.

OUST Butterfly Strategy

OUST (Ouster, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Ouster, Inc. engages in the production and sale of lidar sensor kits for the automotive, industrial, robotics, and smart infrastructure industries in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers the Outer Sensor (OS) product line, including OSDome that provides a hemispheric field of view; OS0 for wide view; OS1, for mid-range view; and OS2 for long-range view. It also provides the DF series, a suite of short, mid, and long-range solid-state digital lidar sensors for advanced driver assistance systems (ADAS) and autonomous driving systems; Velodyne that offers surround-view lidar sensors comprising VLP-16, VLP-16 Lite, VLP-16 Hi-Res, VLP-32, and VLS-128; Ouster Gemini, a perception platform designed for smart infrastructure deployments; and BlueCity, a Gemini-powered solution for traffic operations, planning, and safety. In addition, the company offers ZED, a high-performance camera that provides 2D and 3D color data, as well as AI Compute. Further, it is developing solid-state digital flash sensors, a suite of short, mid, and long-range solid-state digital lidar sensors that provide uniform precision imaging without motion blur across an entire field of view. Ouster, Inc. was founded in 2015 and is headquartered in San Francisco, California.

OUST (Ouster, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $2.94B, a beta of 3.25 versus the broader market, a 52-week range of 16.4-63.79, average daily share volume of 4.2M, a public-listing history dating back to 2020, approximately 320 full-time employees. These structural characteristics shape how OUST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.25 indicates OUST 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 OUST?

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.

OUST snapshot

As of August 14, 2026, spot at $48.99, ATM IV 103.33%, IV rank 38.26%, expected move 29.62%. The butterfly on OUST 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 OUST specifically: OUST IV at 103.33% 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 29.62% (roughly $14.51 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 OUST expiries trade a higher absolute premium for lower per-day decay. Position sizing on OUST should anchor to the underlying notional of $48.99 per share and to the trader's directional view on OUST stock.

OUST butterfly setup

The OUST 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 OUST at $48.99 on that close, the first option leg uses a $47.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OUST 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 OUST shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$47.00	$6.30
Sell 2	Call	$49.00	$5.35
Buy 1	Call	$51.00	$4.60

OUST butterfly risk and reward

Net Premium / Debit: -$20.00
Max Profit (per contract): $155.88
Max Loss (per contract): -$20.00
Breakeven(s): $47.14, $50.86
Risk / Reward Ratio: 7.794

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.

OUST butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on OUST. 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%	-$20.00
$10.84	-77.9%	-$20.00
$21.67	-55.8%	-$20.00
$32.50	-33.7%	-$20.00
$43.33	-11.5%	-$20.00
$54.16	+10.6%	-$20.00
$65.00	+32.7%	-$20.00
$75.83	+54.8%	-$20.00
$86.66	+76.9%	-$20.00
$97.49	+99.0%	-$20.00

When traders use butterfly on OUST

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

OUST thesis for this butterfly

The market-implied 1-standard-deviation range for OUST extends from approximately $34.48 on the downside to $63.50 on the upside. A OUST long call butterfly is a pinning play: it pays maximum at the middle strike if OUST settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OUST IV rank near 38.26% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on OUST should anchor more to the directional view and the expected-move geometry. As a Technology name, OUST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OUST-specific events.

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

Frequently asked questions

What is a butterfly on OUST?: A butterfly on OUST is the butterfly strategy applied to OUST (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 OUST stock at $48.99 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed OUST chain strike and the premiums come straight from that session's bid/ask midpoint.
How are OUST 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 OUST butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 103.33%), the computed maximum profit is $155.88 per contract and the computed maximum loss is -$20.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OUST butterfly?: The breakeven for the OUST butterfly priced on this page is roughly $47.14 and $50.86 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 OUST market-implied 1-standard-deviation expected move in the same options snapshot is approximately 29.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on OUST?: Butterflies on OUST are pinning bets - traders use them when they expect OUST 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 OUST implied volatility affect this butterfly?: OUST ATM IV is at 103.33% with IV rank near 38.26%, 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.