How are PII 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 PII butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.30%), the computed maximum profit is $290.00 per contract and the computed maximum loss is -$210.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PII butterfly?

The breakeven for the PII butterfly priced on this page is roughly $67.10 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PII market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PII implied volatility affect this butterfly?

PII ATM IV is at 42.30% with IV rank near 40.23%, 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.

PII Butterfly Strategy

PII (Polaris Inc.), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.

Polaris Inc. is a global enterprise specializing in the design, engineering, production, and distribution of powersports vehicles. Its business is structured across three primary segments: Off-Road, On-Road, and Marine. The company's off-road lineup features all-terrain vehicles (ATVs), side-by-side utility vehicles, snowmobiles, and innovative snow bike conversion systems. This segment also produces low-emission, light-duty transport, passenger, and industrial vehicles. For paved roads, Polaris offers a selection of motorcycles, quadricycles, and moto-roadsters. Beyond the vehicles themselves, Polaris provides an extensive array of complementary accessories.

PII (Polaris Inc.) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $3.90B, a beta of 1.27 versus the broader market, a 52-week range of 47.14-77.98, average daily share volume of 1.1M, a public-listing history dating back to 1987, approximately 15K full-time employees. These structural characteristics shape how PII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.27 places PII roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PII pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PII?

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.

PII snapshot

As of August 14, 2026, spot at $68.84, ATM IV 42.30%, IV rank 40.23%, expected move 12.13%. The butterfly on PII below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 154-day expiry.

Why this butterfly structure on PII specifically: PII IV at 42.30% 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 12.13% (roughly $8.35 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PII expiries trade a higher absolute premium for lower per-day decay. Position sizing on PII should anchor to the underlying notional of $68.84 per share and to the trader's directional view on PII stock.

PII butterfly setup

The PII butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PII at $68.84 on that close, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PII chain at a 154-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 PII shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$65.00	$10.30
Sell 2	Call	$70.00	$8.20
Buy 1	Call	$70.00	$8.20

PII butterfly risk and reward

Net Premium / Debit: -$210.00
Max Profit (per contract): $290.00
Max Loss (per contract): -$210.00
Breakeven(s): $67.10
Risk / Reward Ratio: 1.381

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.

PII butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PII. 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%	-$210.00
$15.23	-77.9%	-$210.00
$30.45	-55.8%	-$210.00
$45.67	-33.7%	-$210.00
$60.89	-11.5%	-$210.00
$76.11	+10.6%	+$290.00
$91.33	+32.7%	+$290.00
$106.55	+54.8%	+$290.00
$121.77	+76.9%	+$290.00
$136.99	+99.0%	+$290.00

When traders use butterfly on PII

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

PII thesis for this butterfly

The market-implied 1-standard-deviation range for PII extends from approximately $60.49 on the downside to $77.19 on the upside. A PII long call butterfly is a pinning play: it pays maximum at the middle strike if PII settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PII IV rank near 40.23% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PII should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, PII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PII-specific events.

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

Frequently asked questions

What is a butterfly on PII?: A butterfly on PII is the butterfly strategy applied to PII (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 PII stock at $68.84 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PII chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PII 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 PII butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.30%), the computed maximum profit is $290.00 per contract and the computed maximum loss is -$210.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PII butterfly?: The breakeven for the PII butterfly priced on this page is roughly $67.10 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PII market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PII?: Butterflies on PII are pinning bets - traders use them when they expect PII 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 PII implied volatility affect this butterfly?: PII ATM IV is at 42.30% with IV rank near 40.23%, 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.