How are PINS 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 PINS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 46.76%), the computed maximum profit is $75.68 per contract and the computed maximum loss is -$19.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PINS butterfly?

The breakeven for the PINS butterfly priced on this page is roughly $18.69 and $20.31 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 PINS market-implied 1-standard-deviation expected move is approximately 13.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PINS implied volatility affect this butterfly?

PINS ATM IV is at 46.76% with IV rank near 30.33%, 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.

PINS Butterfly Strategy

PINS (Pinterest, Inc.), in the Communication Services sector, (Internet Content & Information industry), listed on NYSE.

Pinterest, Inc. operates as a visual discovery engine in the United States and internationally. The company's engine allows people to find inspiration for their lives, including recipes, style and home inspiration, DIY, and others; and provides video, product, and idea pins. It shows visual machine learning recommendations based on pinners taste and interests. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

PINS (Pinterest, Inc.) trades in the Communication Services sector, specifically Internet Content & Information, with a market capitalization of approximately $12.86B, a trailing P/E of 36.84, a beta of 0.92 versus the broader market, a 52-week range of 13.84-39.93, average daily share volume of 24.2M, a public-listing history dating back to 2019, approximately 5K full-time employees. These structural characteristics shape how PINS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.92 places PINS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.84 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 PINS?

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 PINS snapshot

As of May 15, 2026, spot at $19.54, ATM IV 46.76%, IV rank 30.33%, expected move 13.41%. The butterfly on PINS 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 28-day expiry.

Why this butterfly structure on PINS specifically: PINS IV at 46.76% 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 13.41% (roughly $2.62 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PINS expiries trade a higher absolute premium for lower per-day decay. Position sizing on PINS should anchor to the underlying notional of $19.54 per share and to the trader's directional view on PINS stock.

PINS butterfly setup

The PINS 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 PINS near $19.54, the first option leg uses a $18.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PINS chain at a 28-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 PINS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$18.50	$1.65
Sell 2	Call	$19.50	$1.05
Buy 1	Call	$20.50	$0.64

PINS butterfly risk and reward

Net Premium / Debit: -$19.00
Max Profit (per contract): $75.68
Max Loss (per contract): -$19.00
Breakeven(s): $18.69, $20.31
Risk / Reward Ratio: 3.983

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.

PINS butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PINS. 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	-99.9%	-$19.00
$4.33	-77.8%	-$19.00
$8.65	-55.7%	-$19.00
$12.97	-33.6%	-$19.00
$17.29	-11.5%	-$19.00
$21.61	+10.6%	-$19.00
$25.93	+32.7%	-$19.00
$30.25	+54.8%	-$19.00
$34.56	+76.9%	-$19.00
$38.88	+99.0%	-$19.00

When traders use butterfly on PINS

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

PINS thesis for this butterfly

The market-implied 1-standard-deviation range for PINS extends from approximately $16.92 on the downside to $22.16 on the upside. A PINS long call butterfly is a pinning play: it pays maximum at the middle strike if PINS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PINS IV rank near 30.33% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PINS should anchor more to the directional view and the expected-move geometry. As a Communication Services name, PINS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PINS-specific events.

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

Frequently asked questions

What is a butterfly on PINS?: A butterfly on PINS is the butterfly strategy applied to PINS (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 PINS stock trading near $19.54, the strikes shown on this page are snapped to the nearest listed PINS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PINS 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 PINS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 46.76%), the computed maximum profit is $75.68 per contract and the computed maximum loss is -$19.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PINS butterfly?: The breakeven for the PINS butterfly priced on this page is roughly $18.69 and $20.31 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 PINS market-implied 1-standard-deviation expected move is approximately 13.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PINS?: Butterflies on PINS are pinning bets - traders use them when they expect PINS 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 PINS implied volatility affect this butterfly?: PINS ATM IV is at 46.76% with IV rank near 30.33%, 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.