How are PLSE 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 PLSE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 123.60%), the computed maximum profit is $76.20 per contract and the computed maximum loss is -$112.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PLSE butterfly?

The breakeven for the PLSE butterfly priced on this page is roughly $28.09 and $29.88 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 PLSE market-implied 1-standard-deviation expected move is approximately 35.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PLSE implied volatility affect this butterfly?

PLSE ATM IV is at 123.60% with IV rank near 17.24%, 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.

PLSE Butterfly Strategy

PLSE (Pulse Biosciences, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.

Pulse Biosciences, Inc. is an innovative firm specializing in bioelectric medicine. Their primary offering is the CellFX System, a sophisticated, console-based platform that is precisely controlled via software. This system utilizes its proprietary Nano-Pulse Stimulation technology to deliver extremely brief, nanosecond-duration electrical pulses. This advanced method is designed to selectively eliminate target cells without thermal damage, effectively safeguarding adjacent non-cellular tissue. The CellFX System is applied in the treatment of various medical conditions. The company, originally incorporated in 2014 as Electroblate, Inc., officially became Pulse Biosciences, Inc. in December 2015.

PLSE (Pulse Biosciences, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $1.97B, a beta of 1.66 versus the broader market, a 52-week range of 12.56-31, average daily share volume of 310K, a public-listing history dating back to 2016, approximately 75 full-time employees. These structural characteristics shape how PLSE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.66 indicates PLSE 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 PLSE?

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 PLSE snapshot

As of June 29, 2026, spot at $29.26, ATM IV 123.60%, IV rank 17.24%, expected move 35.44%. The butterfly on PLSE 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 PLSE specifically: PLSE IV at 123.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a PLSE butterfly, with a market-implied 1-standard-deviation move of approximately 35.44% (roughly $10.37 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 PLSE expiries trade a higher absolute premium for lower per-day decay. Position sizing on PLSE should anchor to the underlying notional of $29.26 per share and to the trader's directional view on PLSE stock.

PLSE butterfly setup

The PLSE 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 PLSE near $29.26, the first option leg uses a $28.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PLSE 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 PLSE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$28.00	$2.70
Sell 2	Call	$29.00	$2.50
Buy 1	Call	$31.00	$2.42

PLSE butterfly risk and reward

Net Premium / Debit: -$12.00
Max Profit (per contract): $76.20
Max Loss (per contract): -$112.00
Breakeven(s): $28.09, $29.88
Risk / Reward Ratio: 0.680

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.

PLSE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PLSE. 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%	-$12.00
$6.48	-77.9%	-$12.00
$12.95	-55.8%	-$12.00
$19.42	-33.6%	-$12.00
$25.88	-11.5%	-$12.00
$32.35	+10.6%	-$112.00
$38.82	+32.7%	-$112.00
$45.29	+54.8%	-$112.00
$51.76	+76.9%	-$112.00
$58.23	+99.0%	-$112.00

When traders use butterfly on PLSE

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

PLSE thesis for this butterfly

The market-implied 1-standard-deviation range for PLSE extends from approximately $18.89 on the downside to $39.63 on the upside. A PLSE long call butterfly is a pinning play: it pays maximum at the middle strike if PLSE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PLSE IV rank near 17.24% 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 PLSE at 123.60%. As a Healthcare name, PLSE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PLSE-specific events.

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

Frequently asked questions

What is a butterfly on PLSE?: A butterfly on PLSE is the butterfly strategy applied to PLSE (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 PLSE stock trading near $29.26, the strikes shown on this page are snapped to the nearest listed PLSE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PLSE 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 PLSE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 123.60%), the computed maximum profit is $76.20 per contract and the computed maximum loss is -$112.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PLSE butterfly?: The breakeven for the PLSE butterfly priced on this page is roughly $28.09 and $29.88 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 PLSE market-implied 1-standard-deviation expected move is approximately 35.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PLSE?: Butterflies on PLSE are pinning bets - traders use them when they expect PLSE 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 PLSE implied volatility affect this butterfly?: PLSE ATM IV is at 123.60% with IV rank near 17.24%, 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.