How are PAAS 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 PAAS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 56.25%), the computed maximum profit is $230.95 per contract and the computed maximum loss is -$60.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PAAS butterfly?

The breakeven for the PAAS butterfly priced on this page is roughly $54.60 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 PAAS market-implied 1-standard-deviation expected move is approximately 16.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PAAS implied volatility affect this butterfly?

PAAS ATM IV is at 56.25% with IV rank near 50.51%, 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.

PAAS Butterfly Strategy

PAAS (Pan American Silver Corp.), in the Basic Materials sector, (Silver industry), listed on NYSE.

Pan American Silver Corp., together with its subsidiaries, engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Argentina, and Bolivia. It holds interests in the La Colorada, Dolores, Huaron, Morococha, Shahuindo, La Arena, Timmins West, Bell Creek, Manantial Espejo, San Vicente, Joaquin, Cap-Oeste Sur Este, and Navidad mines. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.

PAAS (Pan American Silver Corp.) trades in the Basic Materials sector, specifically Silver, with a market capitalization of approximately $26.82B, a trailing P/E of 21.09, a beta of 1.49 versus the broader market, a 52-week range of 22.17-69.99, average daily share volume of 6.7M, a public-listing history dating back to 1995, approximately 9K full-time employees. These structural characteristics shape how PAAS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.49 indicates PAAS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PAAS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PAAS?

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 PAAS snapshot

As of May 15, 2026, spot at $56.62, ATM IV 56.25%, IV rank 50.51%, expected move 16.13%. The butterfly on PAAS 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 28-day expiry.

Why this butterfly structure on PAAS specifically: PAAS IV at 56.25% 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 16.13% (roughly $9.13 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 PAAS expiries trade a higher absolute premium for lower per-day decay. Position sizing on PAAS should anchor to the underlying notional of $56.62 per share and to the trader's directional view on PAAS stock.

PAAS butterfly setup

The PAAS 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 PAAS near $56.62, the first option leg uses a $54.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PAAS 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 PAAS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$54.00	$5.10
Sell 2	Call	$57.00	$3.50
Buy 1	Call	$59.00	$2.50

PAAS butterfly risk and reward

Net Premium / Debit: -$60.00
Max Profit (per contract): $230.95
Max Loss (per contract): -$60.00
Breakeven(s): $54.60
Risk / Reward Ratio: 3.849

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.

PAAS butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PAAS. 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%	-$60.00
$12.53	-77.9%	-$60.00
$25.05	-55.8%	-$60.00
$37.56	-33.7%	-$60.00
$50.08	-11.5%	-$60.00
$62.60	+10.6%	+$40.00
$75.12	+32.7%	+$40.00
$87.64	+54.8%	+$40.00
$100.15	+76.9%	+$40.00
$112.67	+99.0%	+$40.00

When traders use butterfly on PAAS

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

PAAS thesis for this butterfly

The market-implied 1-standard-deviation range for PAAS extends from approximately $47.49 on the downside to $65.75 on the upside. A PAAS long call butterfly is a pinning play: it pays maximum at the middle strike if PAAS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PAAS IV rank near 50.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PAAS should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, PAAS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PAAS-specific events.

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

Frequently asked questions

What is a butterfly on PAAS?: A butterfly on PAAS is the butterfly strategy applied to PAAS (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 PAAS stock trading near $56.62, the strikes shown on this page are snapped to the nearest listed PAAS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PAAS 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 PAAS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 56.25%), the computed maximum profit is $230.95 per contract and the computed maximum loss is -$60.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PAAS butterfly?: The breakeven for the PAAS butterfly priced on this page is roughly $54.60 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 PAAS market-implied 1-standard-deviation expected move is approximately 16.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PAAS?: Butterflies on PAAS are pinning bets - traders use them when they expect PAAS 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 PAAS implied volatility affect this butterfly?: PAAS ATM IV is at 56.25% with IV rank near 50.51%, 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.