How are PNFP 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 PNFP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.50%), the computed maximum profit is $393.62 per contract and the computed maximum loss is -$82.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PNFP butterfly?

The breakeven for the PNFP butterfly priced on this page is roughly $95.83 and $104.18 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 PNFP market-implied 1-standard-deviation expected move is approximately 8.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PNFP implied volatility affect this butterfly?

PNFP ATM IV is at 28.50% with IV rank near 2.84%, 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.

PNFP Butterfly Strategy

PNFP (Pinnacle Financial Partners, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.

Pinnacle Financial Partners, Inc. functions as a bank holding company, overseeing Pinnacle Bank, which delivers a comprehensive range of banking solutions and services across the United States. The company facilitates various types of deposit accounts for its clients, including savings accounts, standard checking accounts (both interest-bearing and noninterest-bearing), money market accounts, and certificates of deposit. Its lending portfolio is extensive, covering commercial loans for purposes like equipment financing and working capital, along with commercial real estate loans for investment properties and business ventures backed by real estate. For individual clients, Pinnacle Bank offers secured and unsecured installment loans, term loans, lines of credit, residential first mortgage loans, and home equity loans and lines of credit. Additionally, it issues credit cards for both consumers and businesses. Beyond traditional banking, Pinnacle Financial Partners provides a suite of securities and other financial offerings, diverse investment products, and comprehensive brokerage and investment advisory programs.

PNFP (Pinnacle Financial Partners, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $7.77B, a trailing P/E of 11.93, a beta of 1.04 versus the broader market, a 52-week range of 81.08-120.46, average daily share volume of 1.3M, a public-listing history dating back to 2000, approximately 8K full-time employees. These structural characteristics shape how PNFP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.04 places PNFP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.93 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. PNFP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PNFP?

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 PNFP snapshot

As of June 29, 2026, spot at $100.26, ATM IV 28.50%, IV rank 2.84%, expected move 8.17%. The butterfly on PNFP 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 53-day expiry.

Why this butterfly structure on PNFP specifically: PNFP IV at 28.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a PNFP butterfly, with a market-implied 1-standard-deviation move of approximately 8.17% (roughly $8.19 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PNFP expiries trade a higher absolute premium for lower per-day decay. Position sizing on PNFP should anchor to the underlying notional of $100.26 per share and to the trader's directional view on PNFP stock.

PNFP butterfly setup

The PNFP 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 PNFP near $100.26, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PNFP chain at a 53-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 PNFP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$95.00	$8.20
Sell 2	Call	$100.00	$5.15
Buy 1	Call	$105.00	$2.93

PNFP butterfly risk and reward

Net Premium / Debit: -$82.50
Max Profit (per contract): $393.62
Max Loss (per contract): -$82.50
Breakeven(s): $95.83, $104.18
Risk / Reward Ratio: 4.771

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.

PNFP butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PNFP. 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%	-$82.50
$22.18	-77.9%	-$82.50
$44.34	-55.8%	-$82.50
$66.51	-33.7%	-$82.50
$88.68	-11.6%	-$82.50
$110.84	+10.6%	-$82.50
$133.01	+32.7%	-$82.50
$155.18	+54.8%	-$82.50
$177.35	+76.9%	-$82.50
$199.51	+99.0%	-$82.50

When traders use butterfly on PNFP

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

PNFP thesis for this butterfly

The market-implied 1-standard-deviation range for PNFP extends from approximately $92.07 on the downside to $108.45 on the upside. A PNFP long call butterfly is a pinning play: it pays maximum at the middle strike if PNFP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PNFP IV rank near 2.84% 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 PNFP at 28.50%. As a Financial Services name, PNFP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PNFP-specific events.

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

Frequently asked questions

What is a butterfly on PNFP?: A butterfly on PNFP is the butterfly strategy applied to PNFP (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 PNFP stock trading near $100.26, the strikes shown on this page are snapped to the nearest listed PNFP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PNFP 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 PNFP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.50%), the computed maximum profit is $393.62 per contract and the computed maximum loss is -$82.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PNFP butterfly?: The breakeven for the PNFP butterfly priced on this page is roughly $95.83 and $104.18 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 PNFP market-implied 1-standard-deviation expected move is approximately 8.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PNFP?: Butterflies on PNFP are pinning bets - traders use them when they expect PNFP 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 PNFP implied volatility affect this butterfly?: PNFP ATM IV is at 28.50% with IV rank near 2.84%, 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.