How are PATH 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 PATH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 62.90%), the computed maximum profit is $38.46 per contract and the computed maximum loss is -$8.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PATH butterfly?

The breakeven for the PATH butterfly priced on this page is roughly $10.59 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 PATH market-implied 1-standard-deviation expected move is approximately 18.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PATH implied volatility affect this butterfly?

PATH ATM IV is at 62.90% with IV rank near 37.74%, 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.

PATH Butterfly Strategy

PATH (UiPath Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.

UiPath Inc. delivers a comprehensive automation ecosystem, specializing in Robotic Process Automation (RPA) solutions, with a significant presence in the United States, Romania, and Japan. The company's integrated software suite empowers organizations to design, administer, execute, interact with, evaluate, and oversee their automation initiatives. This robust platform seamlessly blends artificial intelligence with features such as desktop activity recording and in-depth analysis of both human actions and system logs. Through intuitive visualization tools within a centralized portal, users can effectively discover, analyze, and identify processes ripe for automation. It provides low-code development environments, enabling personnel across an organization to create both human-assisted and fully autonomous automations without needing prior programming knowledge. These automation bots can be deployed for interactive use or run independently in the background, leveraging native connectors for integration with common line-of-business applications.

PATH (UiPath Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $5.60B, a trailing P/E of 16.84, a beta of 0.97 versus the broader market, a 52-week range of 9.2-19.84, average daily share volume of 36.3M, a public-listing history dating back to 2021, approximately 4K full-time employees. These structural characteristics shape how PATH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.97 places PATH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on PATH?

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 PATH snapshot

As of June 30, 2026, spot at $11.02, ATM IV 62.90%, IV rank 37.74%, expected move 18.03%. The butterfly on PATH 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 31-day expiry.

Why this butterfly structure on PATH specifically: PATH IV at 62.90% 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 18.03% (roughly $1.99 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PATH expiries trade a higher absolute premium for lower per-day decay. Position sizing on PATH should anchor to the underlying notional of $11.02 per share and to the trader's directional view on PATH stock.

PATH butterfly setup

The PATH 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 PATH near $11.02, the first option leg uses a $10.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PATH chain at a 31-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 PATH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$10.50	$1.09
Sell 2	Call	$11.00	$0.82
Buy 1	Call	$11.50	$0.63

PATH butterfly risk and reward

Net Premium / Debit: -$8.50
Max Profit (per contract): $38.46
Max Loss (per contract): -$8.50
Breakeven(s): $10.59
Risk / Reward Ratio: 4.525

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.

PATH butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PATH. 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	-99.9%	-$8.50
$2.45	-77.8%	-$8.50
$4.88	-55.7%	-$8.50
$7.32	-33.6%	-$8.50
$9.75	-11.5%	-$8.50
$12.19	+10.6%	-$8.50
$14.62	+32.7%	-$8.50
$17.06	+54.8%	-$8.50
$19.49	+76.9%	-$8.50
$21.93	+99.0%	-$8.50

When traders use butterfly on PATH

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

PATH thesis for this butterfly

The market-implied 1-standard-deviation range for PATH extends from approximately $9.03 on the downside to $13.01 on the upside. A PATH long call butterfly is a pinning play: it pays maximum at the middle strike if PATH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PATH IV rank near 37.74% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PATH should anchor more to the directional view and the expected-move geometry. As a Technology name, PATH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PATH-specific events.

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

Frequently asked questions

What is a butterfly on PATH?: A butterfly on PATH is the butterfly strategy applied to PATH (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 PATH stock trading near $11.02, the strikes shown on this page are snapped to the nearest listed PATH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PATH 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 PATH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 62.90%), the computed maximum profit is $38.46 per contract and the computed maximum loss is -$8.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PATH butterfly?: The breakeven for the PATH butterfly priced on this page is roughly $10.59 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 PATH market-implied 1-standard-deviation expected move is approximately 18.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PATH?: Butterflies on PATH are pinning bets - traders use them when they expect PATH 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 PATH implied volatility affect this butterfly?: PATH ATM IV is at 62.90% with IV rank near 37.74%, 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.