How are PRGS 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 PRGS butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 52.80%), the computed maximum profit is $125.00 per contract and the computed maximum loss is -$125.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PRGS butterfly?

The breakeven for the PRGS butterfly priced on this page is roughly $43.75 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 PRGS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PRGS implied volatility affect this butterfly?

PRGS ATM IV is at 52.80% with IV rank near 27.92%, 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.

PRGS Butterfly Strategy

PRGS (Progress Software Corporation), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.

Progress Software Corporation (PRGS) specializes in providing technology solutions that enable businesses to create, launch, and oversee their software applications. The company's extensive product suite includes: OpenEdge, a powerful development platform used to construct secure, multi-language applications that can be deployed across diverse platforms, devices, and cloud infrastructures. A comprehensive set of developer tools offering user interface (UI) components for building web, mobile, desktop, chat, and augmented/virtual reality (AR/VR) applications, alongside automated testing and reporting utilities. Sitefinity, which serves as a unified platform for managing web content and performing in-depth customer analytics. Corticon, a business rules management system designed to infuse applications with decision automation, efficient change processes, and valuable insights. DataDirect Connect, ensuring seamless data connectivity between applications running on various platforms through industry-standard interfaces.

PRGS (Progress Software Corporation) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $1.79B, a trailing P/E of 20.57, a beta of 0.81 versus the broader market, a 52-week range of 23.82-47.37, average daily share volume of 848K, a public-listing history dating back to 1991, approximately 3K full-time employees. These structural characteristics shape how PRGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.81 places PRGS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PRGS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PRGS?

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.

PRGS snapshot

As of August 14, 2026, spot at $43.99, ATM IV 52.80%, IV rank 27.92%, expected move 15.14%. The butterfly on PRGS 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 126-day expiry.

Why this butterfly structure on PRGS specifically: PRGS IV at 52.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a PRGS butterfly, with a market-implied 1-standard-deviation move of approximately 15.14% (roughly $6.66 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PRGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRGS should anchor to the underlying notional of $43.99 per share and to the trader's directional view on PRGS stock.

PRGS butterfly setup

The PRGS 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 PRGS at $43.99 on that close, the first option leg uses a $42.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRGS chain at a 126-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 PRGS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$42.50	$6.70
Sell 2	Call	$45.00	$5.45
Buy 1	Call	$45.00	$5.45

PRGS butterfly risk and reward

Net Premium / Debit: -$125.00
Max Profit (per contract): $125.00
Max Loss (per contract): -$125.00
Breakeven(s): $43.75
Risk / Reward Ratio: 1.000

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.

PRGS butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PRGS. 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%	-$125.00
$9.74	-77.9%	-$125.00
$19.46	-55.8%	-$125.00
$29.19	-33.7%	-$125.00
$38.91	-11.5%	-$125.00
$48.64	+10.6%	+$125.00
$58.36	+32.7%	+$125.00
$68.09	+54.8%	+$125.00
$77.81	+76.9%	+$125.00
$87.54	+99.0%	+$125.00

When traders use butterfly on PRGS

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

PRGS thesis for this butterfly

The market-implied 1-standard-deviation range for PRGS extends from approximately $37.33 on the downside to $50.65 on the upside. A PRGS long call butterfly is a pinning play: it pays maximum at the middle strike if PRGS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PRGS IV rank near 27.92% 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 PRGS at 52.80%. As a Technology name, PRGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRGS-specific events.

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

Frequently asked questions

What is a butterfly on PRGS?: A butterfly on PRGS is the butterfly strategy applied to PRGS (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 PRGS stock at $43.99 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PRGS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PRGS 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 PRGS butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 52.80%), the computed maximum profit is $125.00 per contract and the computed maximum loss is -$125.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PRGS butterfly?: The breakeven for the PRGS butterfly priced on this page is roughly $43.75 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 PRGS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PRGS?: Butterflies on PRGS are pinning bets - traders use them when they expect PRGS 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 PRGS implied volatility affect this butterfly?: PRGS ATM IV is at 52.80% with IV rank near 27.92%, 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.