How are PENG 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 PENG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 150.40%), the computed maximum profit is $220.00 per contract and the computed maximum loss is -$280.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PENG butterfly?

The breakeven for the PENG butterfly priced on this page is roughly $62.20 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 PENG market-implied 1-standard-deviation expected move is approximately 43.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PENG implied volatility affect this butterfly?

PENG ATM IV is at 150.40% with IV rank near 98.31%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

PENG Butterfly Strategy

PENG (Penguin Solutions, Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.

Penguin Solutions, Inc. is a global technology company focused on designing and delivering advanced enterprise solutions. Its business operations are segmented into three primary divisions: Advanced Computing, Integrated Memory, and Optimized LED. Within its Integrated Memory segment, the company supplies sophisticated memory solutions, including dynamic random access memory (DRAM) modules, solid-state drives (SSDs), and flash storage. These offerings cater to demanding applications in networking, telecommunications, data analytics, and artificial intelligence/machine learning. This segment also provides comprehensive supply chain management services, encompassing procurement, logistics, inventory control, temporary warehousing, programming, kitting, and packaging. The Advanced Computing division features several key product lines.

PENG (Penguin Solutions, Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $3.27B, a trailing P/E of 59.66, a beta of 2.89 versus the broader market, a 52-week range of 16.04-77.4, average daily share volume of 2.9M, a public-listing history dating back to 2017, approximately 3K full-time employees. These structural characteristics shape how PENG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.89 indicates PENG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 59.66 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a butterfly on PENG?

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 PENG snapshot

As of June 26, 2026, spot at $61.94, ATM IV 150.40%, IV rank 98.31%, expected move 43.12%. The butterfly on PENG 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 81-day expiry.

Why this butterfly structure on PENG specifically: PENG IV at 150.40% is rich versus its 1-year range, which makes a premium-buying PENG butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 43.12% (roughly $26.71 on the underlying). The 81-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PENG expiries trade a higher absolute premium for lower per-day decay. Position sizing on PENG should anchor to the underlying notional of $61.94 per share and to the trader's directional view on PENG stock.

PENG butterfly setup

The PENG 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 PENG near $61.94, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PENG chain at a 81-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 PENG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$60.00	$19.10
Sell 2	Call	$60.00	$19.10
Buy 1	Call	$65.00	$16.90

PENG butterfly risk and reward

Net Premium / Debit: +$220.00
Max Profit (per contract): $220.00
Max Loss (per contract): -$280.00
Breakeven(s): $62.20
Risk / Reward Ratio: 0.786

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.

PENG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PENG. 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%	+$220.00
$13.70	-77.9%	+$220.00
$27.40	-55.8%	+$220.00
$41.09	-33.7%	+$220.00
$54.79	-11.5%	+$220.00
$68.48	+10.6%	-$280.00
$82.18	+32.7%	-$280.00
$95.87	+54.8%	-$280.00
$109.56	+76.9%	-$280.00
$123.26	+99.0%	-$280.00

When traders use butterfly on PENG

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

PENG thesis for this butterfly

The market-implied 1-standard-deviation range for PENG extends from approximately $35.23 on the downside to $88.65 on the upside. A PENG long call butterfly is a pinning play: it pays maximum at the middle strike if PENG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PENG IV rank near 98.31% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on PENG at 150.40%. As a Technology name, PENG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PENG-specific events.

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

Frequently asked questions

What is a butterfly on PENG?: A butterfly on PENG is the butterfly strategy applied to PENG (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 PENG stock trading near $61.94, the strikes shown on this page are snapped to the nearest listed PENG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PENG 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 PENG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 150.40%), the computed maximum profit is $220.00 per contract and the computed maximum loss is -$280.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PENG butterfly?: The breakeven for the PENG butterfly priced on this page is roughly $62.20 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 PENG market-implied 1-standard-deviation expected move is approximately 43.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PENG?: Butterflies on PENG are pinning bets - traders use them when they expect PENG 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 PENG implied volatility affect this butterfly?: PENG ATM IV is at 150.40% with IV rank near 98.31%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.