How are SEDG 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 SEDG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 79.33%), the computed maximum profit is $116.23 per contract and the computed maximum loss is -$69.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SEDG butterfly?

The breakeven for the SEDG butterfly priced on this page is roughly $33.31 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 SEDG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SEDG implied volatility affect this butterfly?

SEDG ATM IV is at 79.33% with IV rank near 10.62%, 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.

SEDG Butterfly Strategy

SEDG (SolarEdge Technologies, Inc.), in the Energy sector, (Solar industry), listed on NASDAQ.

SolarEdge Technologies, Inc. (SEDG) is a company specializing in the design, development, and sale of direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations globally. The company operates through five key segments: Solar, Energy Storage, e-Mobility, Critical Power, and Automation Machines. Its product portfolio encompasses inverters, power optimizers, communication devices, and smart energy management solutions, catering to residential, commercial, and smaller utility-scale solar projects. SolarEdge also provides a cloud-based monitoring platform that collects and processes data from its optimizers and inverters to oversee and manage solar PV systems. Beyond its core solar offerings, SolarEdge delivers a range of solutions including residential, commercial, and large-scale PV, energy storage and backup, electric vehicle charging, and home energy management, along with grid services. The company also extends into e-Mobility, automation machinery, lithium-ion cells and battery packs, and uninterruptible power supply (UPS) solutions, as well as developing virtual power plants to aid in grid load management and stability.

SEDG (SolarEdge Technologies, Inc.) trades in the Energy sector, specifically Solar, with a market capitalization of approximately $1.95B, a beta of 1.47 versus the broader market, a 52-week range of 24.38-81.25, average daily share volume of 3.6M, a public-listing history dating back to 2015, approximately 4K full-time employees. These structural characteristics shape how SEDG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.47 indicates SEDG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on SEDG?

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.

SEDG snapshot

As of August 14, 2026, spot at $32.30, ATM IV 79.33%, IV rank 10.62%, expected move 22.74%. The butterfly on SEDG 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 28-day expiry.

Why this butterfly structure on SEDG specifically: SEDG IV at 79.33% is on the cheap side of its 1-year range, which favors premium-buying structures like a SEDG butterfly, with a market-implied 1-standard-deviation move of approximately 22.74% (roughly $7.35 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 SEDG expiries trade a higher absolute premium for lower per-day decay. Position sizing on SEDG should anchor to the underlying notional of $32.30 per share and to the trader's directional view on SEDG stock.

SEDG butterfly setup

The SEDG 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 SEDG at $32.30 on that close, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SEDG 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 SEDG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$31.00	$3.50
Sell 2	Call	$32.00	$3.01
Buy 1	Call	$34.00	$2.22

SEDG butterfly risk and reward

Net Premium / Debit: +$30.50
Max Profit (per contract): $116.23
Max Loss (per contract): -$69.50
Breakeven(s): $33.31
Risk / Reward Ratio: 1.672

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.

SEDG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SEDG. 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%	+$30.50
$7.15	-77.9%	+$30.50
$14.29	-55.8%	+$30.50
$21.43	-33.6%	+$30.50
$28.57	-11.5%	+$30.50
$35.71	+10.6%	-$69.50
$42.85	+32.7%	-$69.50
$49.99	+54.8%	-$69.50
$57.13	+76.9%	-$69.50
$64.28	+99.0%	-$69.50

When traders use butterfly on SEDG

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

SEDG thesis for this butterfly

The market-implied 1-standard-deviation range for SEDG extends from approximately $24.95 on the downside to $39.65 on the upside. A SEDG long call butterfly is a pinning play: it pays maximum at the middle strike if SEDG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SEDG IV rank near 10.62% 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 SEDG at 79.33%. As a Energy name, SEDG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SEDG-specific events.

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

Frequently asked questions

What is a butterfly on SEDG?: A butterfly on SEDG is the butterfly strategy applied to SEDG (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 SEDG stock at $32.30 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SEDG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SEDG 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 SEDG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 79.33%), the computed maximum profit is $116.23 per contract and the computed maximum loss is -$69.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SEDG butterfly?: The breakeven for the SEDG butterfly priced on this page is roughly $33.31 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 SEDG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SEDG?: Butterflies on SEDG are pinning bets - traders use them when they expect SEDG 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 SEDG implied volatility affect this butterfly?: SEDG ATM IV is at 79.33% with IV rank near 10.62%, 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.