How are SBUX 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 SBUX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.43%), the computed maximum profit is $394.76 per contract and the computed maximum loss is -$55.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SBUX butterfly?

The breakeven for the SBUX butterfly priced on this page is roughly $99.56 and $108.45 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 SBUX market-implied 1-standard-deviation expected move is approximately 10.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SBUX implied volatility affect this butterfly?

SBUX ATM IV is at 36.43% with IV rank near 44.10%, 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.

SBUX Butterfly Strategy

SBUX (Starbucks Corporation), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.

Starbucks Corporation, along with its various subsidiaries, operates worldwide as a key player in roasting, marketing, and selling specialty coffee. Its business is structured into three main operating divisions: North America, International markets, and Channel Development. The company's retail outlets offer a broad assortment of coffee and tea beverages, roasted whole bean and ground coffees, single-serve options, and ready-to-drink products. Customers can also find a variety of food items, including pastries, breakfast sandwiches, and lunch selections. Furthermore, Starbucks extends its brand reach by licensing its trademarks to independently operated stores, grocery retailers, and foodservice accounts. Products are sold under well-known labels such as Starbucks, Teavana, Seattle's Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi.

SBUX (Starbucks Corporation) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $119.21B, a trailing P/E of 79.69, a beta of 0.98 versus the broader market, a 52-week range of 77.99-108.88, average daily share volume of 7.7M, a public-listing history dating back to 1992, approximately 361K full-time employees. These structural characteristics shape how SBUX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.98 places SBUX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 79.69 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. SBUX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SBUX?

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 SBUX snapshot

As of June 29, 2026, spot at $103.97, ATM IV 36.43%, IV rank 44.10%, expected move 10.44%. The butterfly on SBUX 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 32-day expiry.

Why this butterfly structure on SBUX specifically: SBUX IV at 36.43% 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 10.44% (roughly $10.86 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SBUX expiries trade a higher absolute premium for lower per-day decay. Position sizing on SBUX should anchor to the underlying notional of $103.97 per share and to the trader's directional view on SBUX stock.

SBUX butterfly setup

The SBUX 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 SBUX near $103.97, the first option leg uses a $99.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SBUX chain at a 32-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 SBUX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$99.00	$8.00
Sell 2	Call	$104.00	$5.00
Buy 1	Call	$109.00	$2.56

SBUX butterfly risk and reward

Net Premium / Debit: -$55.50
Max Profit (per contract): $394.76
Max Loss (per contract): -$55.50
Breakeven(s): $99.56, $108.45
Risk / Reward Ratio: 7.113

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.

SBUX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SBUX. 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%	-$55.50
$23.00	-77.9%	-$55.50
$45.98	-55.8%	-$55.50
$68.97	-33.7%	-$55.50
$91.96	-11.6%	-$55.50
$114.95	+10.6%	-$55.50
$137.93	+32.7%	-$55.50
$160.92	+54.8%	-$55.50
$183.91	+76.9%	-$55.50
$206.90	+99.0%	-$55.50

When traders use butterfly on SBUX

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

SBUX thesis for this butterfly

The market-implied 1-standard-deviation range for SBUX extends from approximately $93.11 on the downside to $114.83 on the upside. A SBUX long call butterfly is a pinning play: it pays maximum at the middle strike if SBUX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SBUX IV rank near 44.10% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SBUX should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, SBUX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SBUX-specific events.

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

Frequently asked questions

What is a butterfly on SBUX?: A butterfly on SBUX is the butterfly strategy applied to SBUX (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 SBUX stock trading near $103.97, the strikes shown on this page are snapped to the nearest listed SBUX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SBUX 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 SBUX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.43%), the computed maximum profit is $394.76 per contract and the computed maximum loss is -$55.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SBUX butterfly?: The breakeven for the SBUX butterfly priced on this page is roughly $99.56 and $108.45 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 SBUX market-implied 1-standard-deviation expected move is approximately 10.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SBUX?: Butterflies on SBUX are pinning bets - traders use them when they expect SBUX 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 SBUX implied volatility affect this butterfly?: SBUX ATM IV is at 36.43% with IV rank near 44.10%, 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.