How are SCCO 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 SCCO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.51%), the computed maximum profit is $613.35 per contract and the computed maximum loss is -$330.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SCCO butterfly?

The breakeven for the SCCO butterfly priced on this page is roughly $173.30 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 SCCO market-implied 1-standard-deviation expected move is approximately 15.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SCCO implied volatility affect this butterfly?

SCCO ATM IV is at 55.51% with IV rank near 67.99%, 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.

SCCO Butterfly Strategy

SCCO (Southern Copper Corporation), in the Basic Materials sector, (Copper industry), listed on NYSE.

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and two operating SX-EW plants in Mexico. In addition, it operates five underground mines that produce zinc, lead, copper, silver, and gold; a coal mine that produces coal and coke; and a zinc refinery. The company has interests in 82,134 hectares of exploration concessions in Peru; 493,533 hectares of exploration concessions in Mexico; 246,346 hectares of exploration concessions in Argentina; 29,888 hectares of exploration concessions in Chile; and 7,299 hectares of exploration concessions in Ecuador.

SCCO (Southern Copper Corporation) trades in the Basic Materials sector, specifically Copper, with a market capitalization of approximately $158.51B, a trailing P/E of 31.72, a beta of 1.08 versus the broader market, a 52-week range of 85.33004-221.66832, average daily share volume of 1.7M, a public-listing history dating back to 1996, approximately 16K full-time employees. These structural characteristics shape how SCCO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.08 places SCCO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SCCO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SCCO?

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 SCCO snapshot

As of May 15, 2026, spot at $177.88, ATM IV 55.51%, IV rank 67.99%, expected move 15.91%. The butterfly on SCCO 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 28-day expiry.

Why this butterfly structure on SCCO specifically: SCCO IV at 55.51% 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 15.91% (roughly $28.31 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SCCO expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCCO should anchor to the underlying notional of $177.88 per share and to the trader's directional view on SCCO stock.

SCCO butterfly setup

The SCCO 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 SCCO near $177.88, 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 SCCO chain at a 28-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 SCCO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$170.00	$15.60
Sell 2	Call	$180.00	$10.20
Buy 1	Call	$185.00	$8.10

SCCO butterfly risk and reward

Net Premium / Debit: -$330.00
Max Profit (per contract): $613.35
Max Loss (per contract): -$330.00
Breakeven(s): $173.30
Risk / Reward Ratio: 1.859

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.

SCCO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SCCO. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$330.00
$39.34	-77.9%	-$330.00
$78.67	-55.8%	-$330.00
$118.00	-33.7%	-$330.00
$157.33	-11.6%	-$330.00
$196.66	+10.6%	+$170.00
$235.98	+32.7%	+$170.00
$275.31	+54.8%	+$170.00
$314.64	+76.9%	+$170.00
$353.97	+99.0%	+$170.00

When traders use butterfly on SCCO

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

SCCO thesis for this butterfly

The market-implied 1-standard-deviation range for SCCO extends from approximately $149.57 on the downside to $206.19 on the upside. A SCCO long call butterfly is a pinning play: it pays maximum at the middle strike if SCCO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SCCO IV rank near 67.99% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SCCO should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, SCCO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCCO-specific events.

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

Frequently asked questions

What is a butterfly on SCCO?: A butterfly on SCCO is the butterfly strategy applied to SCCO (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 SCCO stock trading near $177.88, the strikes shown on this page are snapped to the nearest listed SCCO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SCCO 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 SCCO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.51%), the computed maximum profit is $613.35 per contract and the computed maximum loss is -$330.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SCCO butterfly?: The breakeven for the SCCO butterfly priced on this page is roughly $173.30 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 SCCO market-implied 1-standard-deviation expected move is approximately 15.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SCCO?: Butterflies on SCCO are pinning bets - traders use them when they expect SCCO 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 SCCO implied volatility affect this butterfly?: SCCO ATM IV is at 55.51% with IV rank near 67.99%, 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.