How are PODD 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 PODD butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.90%), the computed maximum profit is $545.77 per contract and the computed maximum loss is -$410.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PODD butterfly?

The breakeven for the PODD butterfly priced on this page is roughly $139.10 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 PODD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PODD implied volatility affect this butterfly?

PODD ATM IV is at 40.90% with IV rank near 31.64%, 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.

PODD Butterfly Strategy

PODD (Insulet Corp.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes in the United States and internationally. The company offers Omnipod platform products comprising Omnipod 5 automated insulin delivery system, which includes a proprietary AID algorithm embedded in the pod that integrates with a third-party continuous glucose monitor to obtain glucose values through wireless Bluetooth communication; Omnipod DASH insulin management system that features a Bluetooth enabled pod that is controlled by a smartphone-like personal diabetes manager with a color touch screen user interface; and the Omnipod Insulin Management System. It also provides pods for Amgen for use in the Neulasta Onpro kit, which is a delivery system to help reduce the risk of infection after intense chemotherapy. The company sells its products to end-users through the pharmacy channel; and independent distributors. Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.

PODD (Insulet Corp.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $10.05B, a trailing P/E of 26.78, a beta of 1.10 versus the broader market, a 52-week range of 126.4-354.88, average daily share volume of 1.5M, a public-listing history dating back to 2007, approximately 5K full-time employees. These structural characteristics shape how PODD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.10 places PODD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on PODD?

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.

PODD snapshot

As of August 14, 2026, spot at $143.83, ATM IV 40.90%, IV rank 31.64%, expected move 11.73%. The butterfly on PODD 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 35-day expiry.

Why this butterfly structure on PODD specifically: PODD IV at 40.90% 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 11.73% (roughly $16.87 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PODD expiries trade a higher absolute premium for lower per-day decay. Position sizing on PODD should anchor to the underlying notional of $143.83 per share and to the trader's directional view on PODD stock.

PODD butterfly setup

The PODD 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 PODD at $143.83 on that close, 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 PODD chain at a 35-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 PODD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$135.00	$13.10
Sell 2	Call	$145.00	$7.10
Buy 1	Call	$150.00	$5.20

PODD butterfly risk and reward

Net Premium / Debit: -$410.00
Max Profit (per contract): $545.77
Max Loss (per contract): -$410.00
Breakeven(s): $139.10
Risk / Reward Ratio: 1.331

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.

PODD butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PODD. 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%	-$410.00
$31.81	-77.9%	-$410.00
$63.61	-55.8%	-$410.00
$95.41	-33.7%	-$410.00
$127.21	-11.6%	-$410.00
$159.01	+10.6%	+$90.00
$190.81	+32.7%	+$90.00
$222.61	+54.8%	+$90.00
$254.41	+76.9%	+$90.00
$286.21	+99.0%	+$90.00

When traders use butterfly on PODD

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

PODD thesis for this butterfly

The market-implied 1-standard-deviation range for PODD extends from approximately $126.96 on the downside to $160.70 on the upside. A PODD long call butterfly is a pinning play: it pays maximum at the middle strike if PODD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PODD IV rank near 31.64% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PODD should anchor more to the directional view and the expected-move geometry. As a Healthcare name, PODD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PODD-specific events.

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

Frequently asked questions

What is a butterfly on PODD?: A butterfly on PODD is the butterfly strategy applied to PODD (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 PODD stock at $143.83 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PODD chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PODD 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 PODD butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.90%), the computed maximum profit is $545.77 per contract and the computed maximum loss is -$410.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PODD butterfly?: The breakeven for the PODD butterfly priced on this page is roughly $139.10 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 PODD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PODD?: Butterflies on PODD are pinning bets - traders use them when they expect PODD 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 PODD implied volatility affect this butterfly?: PODD ATM IV is at 40.90% with IV rank near 31.64%, 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.