How are PI 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 PI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 74.30%), the computed maximum profit is $435.87 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 PI butterfly?

The breakeven for the PI butterfly priced on this page is roughly $125.48 and $134.50 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 PI market-implied 1-standard-deviation expected move is approximately 21.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PI implied volatility affect this butterfly?

PI ATM IV is at 74.30% with IV rank near 38.02%, 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.

PI Butterfly Strategy

PI (Impinj, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Impinj, Inc., established in 2000 and headquartered in Seattle, Washington, provides a sophisticated cloud connectivity platform across the Americas, Asia Pacific, Europe, the Middle East, and Africa. This comprehensive platform facilitates the wireless linking of individual physical items, subsequently transmitting vital data about these connected objects to a diverse range of business and consumer software applications. The company's offerings are built around several interconnected product families. Firstly, it features "endpoint ICs," which are miniature radio-on-a-chip components designed to be affixed to an item, supplying it with a unique identifier. Secondly, "systems products" include reader ICs, standalone readers, and gateways. These components work in unison to wirelessly power and enable bidirectional communication with endpoint ICs on host items, as well as to execute tasks such as reading, writing, authenticating, and interacting with them.

PI (Impinj, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $4.04B, a beta of 1.92 versus the broader market, a 52-week range of 87.36-247.064, average daily share volume of 467K, a public-listing history dating back to 2016, approximately 451 full-time employees. These structural characteristics shape how PI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.92 indicates PI 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 PI?

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 PI snapshot

As of June 29, 2026, spot at $130.61, ATM IV 74.30%, IV rank 38.02%, expected move 21.30%. The butterfly on PI 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 18-day expiry.

Why this butterfly structure on PI specifically: PI IV at 74.30% 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 21.30% (roughly $27.82 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PI expiries trade a higher absolute premium for lower per-day decay. Position sizing on PI should anchor to the underlying notional of $130.61 per share and to the trader's directional view on PI stock.

PI butterfly setup

The PI 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 PI near $130.61, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PI chain at a 18-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 PI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$125.00	$12.30
Sell 2	Call	$130.00	$9.35
Buy 1	Call	$135.00	$7.00

PI butterfly risk and reward

Net Premium / Debit: -$60.00
Max Profit (per contract): $435.87
Max Loss (per contract): -$60.00
Breakeven(s): $125.48, $134.50
Risk / Reward Ratio: 7.264

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.

PI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PI. 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%	-$60.00
$28.89	-77.9%	-$60.00
$57.76	-55.8%	-$60.00
$86.64	-33.7%	-$60.00
$115.52	-11.6%	-$60.00
$144.40	+10.6%	-$60.00
$173.27	+32.7%	-$60.00
$202.15	+54.8%	-$60.00
$231.03	+76.9%	-$60.00
$259.91	+99.0%	-$60.00

When traders use butterfly on PI

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

PI thesis for this butterfly

The market-implied 1-standard-deviation range for PI extends from approximately $102.79 on the downside to $158.43 on the upside. A PI long call butterfly is a pinning play: it pays maximum at the middle strike if PI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PI IV rank near 38.02% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PI should anchor more to the directional view and the expected-move geometry. As a Technology name, PI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PI-specific events.

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

Frequently asked questions

What is a butterfly on PI?: A butterfly on PI is the butterfly strategy applied to PI (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 PI stock trading near $130.61, the strikes shown on this page are snapped to the nearest listed PI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PI 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 PI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 74.30%), the computed maximum profit is $435.87 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 PI butterfly?: The breakeven for the PI butterfly priced on this page is roughly $125.48 and $134.50 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 PI market-implied 1-standard-deviation expected move is approximately 21.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PI?: Butterflies on PI are pinning bets - traders use them when they expect PI 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 PI implied volatility affect this butterfly?: PI ATM IV is at 74.30% with IV rank near 38.02%, 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.