How are SBAC 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 SBAC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 35.20%), the computed maximum profit is $587.09 per contract and the computed maximum loss is -$372.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SBAC butterfly?

The breakeven for the SBAC butterfly priced on this page is roughly $173.73 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 SBAC market-implied 1-standard-deviation expected move is approximately 10.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SBAC implied volatility affect this butterfly?

SBAC ATM IV is at 35.20% with IV rank near 60.76%, 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.

SBAC Butterfly Strategy

SBAC (SBA Communications Corporation), in the Real Estate sector, (REIT - Specialty industry), listed on NASDAQ.

SBA Communications Corporation stands as a premier owner, operator, and provider of crucial wireless communication infrastructure across North, Central, and South America, in addition to South Africa. Guided by its mission to 'Build Better Wireless,' the company primarily earns revenue from two core business areas: the leasing of antenna space and providing comprehensive site development services. Its central activity revolves around renting out capacity on its shared communication towers to various wireless service providers through long-term contractual agreements. For further details, please visit www.sbasite.com.

SBAC (SBA Communications Corporation) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $19.49B, a trailing P/E of 19.11, a beta of 0.98 versus the broader market, a 52-week range of 162.41-243.16, average daily share volume of 1.2M, a public-listing history dating back to 1999, approximately 2K full-time employees. These structural characteristics shape how SBAC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.98 places SBAC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SBAC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SBAC?

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 SBAC snapshot

As of June 29, 2026, spot at $177.72, ATM IV 35.20%, IV rank 60.76%, expected move 10.09%. The butterfly on SBAC 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 SBAC specifically: SBAC IV at 35.20% 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 10.09% (roughly $17.93 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 SBAC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SBAC should anchor to the underlying notional of $177.72 per share and to the trader's directional view on SBAC stock.

SBAC butterfly setup

The SBAC 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 SBAC near $177.72, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SBAC 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 SBAC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$170.00	$10.85
Sell 2	Call	$180.00	$5.15
Buy 1	Call	$185.00	$3.18

SBAC butterfly risk and reward

Net Premium / Debit: -$372.50
Max Profit (per contract): $587.09
Max Loss (per contract): -$372.50
Breakeven(s): $173.73
Risk / Reward Ratio: 1.576

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.

SBAC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SBAC. 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%	-$372.50
$39.30	-77.9%	-$372.50
$78.60	-55.8%	-$372.50
$117.89	-33.7%	-$372.50
$157.19	-11.6%	-$372.50
$196.48	+10.6%	+$127.50
$235.77	+32.7%	+$127.50
$275.07	+54.8%	+$127.50
$314.36	+76.9%	+$127.50
$353.65	+99.0%	+$127.50

When traders use butterfly on SBAC

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

SBAC thesis for this butterfly

The market-implied 1-standard-deviation range for SBAC extends from approximately $159.79 on the downside to $195.65 on the upside. A SBAC long call butterfly is a pinning play: it pays maximum at the middle strike if SBAC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SBAC IV rank near 60.76% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SBAC should anchor more to the directional view and the expected-move geometry. As a Real Estate name, SBAC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SBAC-specific events.

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

Frequently asked questions

What is a butterfly on SBAC?: A butterfly on SBAC is the butterfly strategy applied to SBAC (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 SBAC stock trading near $177.72, the strikes shown on this page are snapped to the nearest listed SBAC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SBAC 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 SBAC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 35.20%), the computed maximum profit is $587.09 per contract and the computed maximum loss is -$372.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SBAC butterfly?: The breakeven for the SBAC butterfly priced on this page is roughly $173.73 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 SBAC market-implied 1-standard-deviation expected move is approximately 10.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SBAC?: Butterflies on SBAC are pinning bets - traders use them when they expect SBAC 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 SBAC implied volatility affect this butterfly?: SBAC ATM IV is at 35.20% with IV rank near 60.76%, 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.