How are PARR 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 PARR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 59.80%), the computed maximum profit is $200.00 per contract and the computed maximum loss is -$300.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PARR butterfly?

The breakeven for the PARR butterfly priced on this page is roughly $58.00 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 PARR market-implied 1-standard-deviation expected move is approximately 17.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PARR implied volatility affect this butterfly?

PARR ATM IV is at 59.80% with IV rank near 57.93%, 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.

PARR Butterfly Strategy

PARR (Par Pacific Holdings, Inc.), in the Energy sector, (Oil & Gas Refining & Marketing industry), listed on NYSE.

Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through three segments: Refining, Retail, and Logistics. The Refining segment owns and operates three refineries that produces ultra-low sulfur diesel, gasoline, jet fuel, marine fuel, distillate, asphalt, low sulfur fuel oil, and other associated refined products primarily for consumption in Hawaii, Pacific Northwest, Wyoming, and South Dakota. The Retail segment operates 119 fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho under the Cenex, nomnom, and Zip Trip brand names. The Logistics segment owns and operates terminals, pipelines, a single point mooring, and trucking operations to distribute refined products throughout the island of Oahu, Maui, Hawaii, Molokai, and Kauai. It also leases marine vessels; owns and operates a crude oil pipeline gathering system, a refined products pipeline, storage facilities, and loading racks in Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota.

PARR (Par Pacific Holdings, Inc.) trades in the Energy sector, specifically Oil & Gas Refining & Marketing, with a market capitalization of approximately $3.03B, a trailing P/E of 6.45, a beta of 0.91 versus the broader market, a 52-week range of 18.82-70.39, average daily share volume of 1.5M, a public-listing history dating back to 2012, approximately 2K full-time employees. These structural characteristics shape how PARR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.91 places PARR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 6.45 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a butterfly on PARR?

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 PARR snapshot

As of May 15, 2026, spot at $58.59, ATM IV 59.80%, IV rank 57.93%, expected move 17.14%. The butterfly on PARR 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 63-day expiry.

Why this butterfly structure on PARR specifically: PARR IV at 59.80% 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 17.14% (roughly $10.04 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PARR expiries trade a higher absolute premium for lower per-day decay. Position sizing on PARR should anchor to the underlying notional of $58.59 per share and to the trader's directional view on PARR stock.

PARR butterfly setup

The PARR 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 PARR near $58.59, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PARR chain at a 63-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 PARR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$55.00	$7.95
Sell 2	Call	$60.00	$4.95
Buy 1	Call	$60.00	$4.95

PARR butterfly risk and reward

Net Premium / Debit: -$300.00
Max Profit (per contract): $200.00
Max Loss (per contract): -$300.00
Breakeven(s): $58.00
Risk / Reward Ratio: 0.667

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.

PARR butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PARR. 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%	-$300.00
$12.96	-77.9%	-$300.00
$25.92	-55.8%	-$300.00
$38.87	-33.7%	-$300.00
$51.82	-11.5%	-$300.00
$64.78	+10.6%	+$200.00
$77.73	+32.7%	+$200.00
$90.68	+54.8%	+$200.00
$103.64	+76.9%	+$200.00
$116.59	+99.0%	+$200.00

When traders use butterfly on PARR

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

PARR thesis for this butterfly

The market-implied 1-standard-deviation range for PARR extends from approximately $48.55 on the downside to $68.63 on the upside. A PARR long call butterfly is a pinning play: it pays maximum at the middle strike if PARR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PARR IV rank near 57.93% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PARR should anchor more to the directional view and the expected-move geometry. As a Energy name, PARR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PARR-specific events.

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

Frequently asked questions

What is a butterfly on PARR?: A butterfly on PARR is the butterfly strategy applied to PARR (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 PARR stock trading near $58.59, the strikes shown on this page are snapped to the nearest listed PARR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PARR 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 PARR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 59.80%), the computed maximum profit is $200.00 per contract and the computed maximum loss is -$300.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PARR butterfly?: The breakeven for the PARR butterfly priced on this page is roughly $58.00 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 PARR market-implied 1-standard-deviation expected move is approximately 17.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PARR?: Butterflies on PARR are pinning bets - traders use them when they expect PARR 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 PARR implied volatility affect this butterfly?: PARR ATM IV is at 59.80% with IV rank near 57.93%, 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.