How are PLD 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 PLD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is $488.90 per contract and the computed maximum loss is -$490.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PLD butterfly?

The breakeven for the PLD butterfly priced on this page is roughly $145.10 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 PLD market-implied 1-standard-deviation expected move is approximately 6.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PLD implied volatility affect this butterfly?

PLD ATM IV is at 24.10% with IV rank near 17.91%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

PLD Butterfly Strategy

PLD (Prologis, Inc.), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of December 31, 2020, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 984 million square feet (91 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 5,500 customers principally across two major categories: business-to-business and retail/online fulfillment.

PLD (Prologis, Inc.) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $132.39B, a trailing P/E of 35.57, a beta of 1.35 versus the broader market, a 52-week range of 103.02-145.44, average daily share volume of 3.4M, a public-listing history dating back to 1997, approximately 3K full-time employees. These structural characteristics shape how PLD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.35 indicates PLD 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 35.57 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. PLD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PLD?

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 PLD snapshot

As of May 15, 2026, spot at $140.49, ATM IV 24.10%, IV rank 17.91%, expected move 6.91%. The butterfly on PLD 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 34-day expiry.

Why this butterfly structure on PLD specifically: PLD IV at 24.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a PLD butterfly, with a market-implied 1-standard-deviation move of approximately 6.91% (roughly $9.71 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PLD expiries trade a higher absolute premium for lower per-day decay. Position sizing on PLD should anchor to the underlying notional of $140.49 per share and to the trader's directional view on PLD stock.

PLD butterfly setup

The PLD 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 PLD near $140.49, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PLD chain at a 34-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 PLD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$135.00	$7.75
Sell 2	Call	$140.00	$4.35
Buy 1	Call	$150.00	$0.85

PLD butterfly risk and reward

Net Premium / Debit: +$10.00
Max Profit (per contract): $488.90
Max Loss (per contract): -$490.00
Breakeven(s): $145.10
Risk / Reward Ratio: 0.998

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.

PLD butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PLD. 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	-100.0%	+$10.00
$31.07	-77.9%	+$10.00
$62.13	-55.8%	+$10.00
$93.20	-33.7%	+$10.00
$124.26	-11.6%	+$10.00
$155.32	+10.6%	-$490.00
$186.38	+32.7%	-$490.00
$217.44	+54.8%	-$490.00
$248.51	+76.9%	-$490.00
$279.57	+99.0%	-$490.00

When traders use butterfly on PLD

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

PLD thesis for this butterfly

The market-implied 1-standard-deviation range for PLD extends from approximately $130.78 on the downside to $150.20 on the upside. A PLD long call butterfly is a pinning play: it pays maximum at the middle strike if PLD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PLD IV rank near 17.91% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on PLD at 24.10%. As a Real Estate name, PLD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PLD-specific events.

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

Frequently asked questions

What is a butterfly on PLD?: A butterfly on PLD is the butterfly strategy applied to PLD (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 PLD stock trading near $140.49, the strikes shown on this page are snapped to the nearest listed PLD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PLD 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 PLD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is $488.90 per contract and the computed maximum loss is -$490.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PLD butterfly?: The breakeven for the PLD butterfly priced on this page is roughly $145.10 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 PLD market-implied 1-standard-deviation expected move is approximately 6.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PLD?: Butterflies on PLD are pinning bets - traders use them when they expect PLD 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 PLD implied volatility affect this butterfly?: PLD ATM IV is at 24.10% with IV rank near 17.91%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.