How are SIG 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 SIG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 47.01%), the computed maximum profit is $381.59 per contract and the computed maximum loss is -$115.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SIG butterfly?

The breakeven for the SIG butterfly priced on this page is roughly $80.92 and $88.85 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 SIG market-implied 1-standard-deviation expected move is approximately 13.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SIG implied volatility affect this butterfly?

SIG ATM IV is at 47.01% with IV rank near 31.38%, 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.

SIG Butterfly Strategy

SIG (Signet Jewelers Limited), in the Consumer Cyclical sector, (Luxury Goods industry), listed on NYSE.

Signet Jewelers Limited (SJG) functions as a prominent retailer specializing in diamond jewelry. Its diverse operations are structured across three primary segments: North America, International, and 'Other' activities. Within North America, the company oversees numerous jewelry stores and kiosks. These are strategically situated in malls, as mall-based kiosks, and in standalone off-mall sites throughout both the United States and Canada. This division operates under well-known banners such as Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria Of Jewelry, Jared Vault, Zales Jewelers, Zales Outlet, Diamonds Direct, James Allen, Banter by Piercing Pagoda, and Peoples Jewellers. Additionally, its digital footprint is expanded through the online platforms JamesAllen.com and Rocksbox.

SIG (Signet Jewelers Limited) trades in the Consumer Cyclical sector, specifically Luxury Goods, with a market capitalization of approximately $3.44B, a trailing P/E of 11.97, a beta of 1.15 versus the broader market, a 52-week range of 71.62-110.2, average daily share volume of 877K, a public-listing history dating back to 1988, approximately 28K full-time employees. These structural characteristics shape how SIG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.15 places SIG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.97 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. SIG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SIG?

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 SIG snapshot

As of June 29, 2026, spot at $85.39, ATM IV 47.01%, IV rank 31.38%, expected move 13.48%. The butterfly on SIG 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 SIG specifically: SIG IV at 47.01% 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 13.48% (roughly $11.51 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 SIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on SIG should anchor to the underlying notional of $85.39 per share and to the trader's directional view on SIG stock.

SIG butterfly setup

The SIG 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 SIG near $85.39, the first option leg uses a $81.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SIG 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 SIG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$81.00	$7.95
Sell 2	Call	$85.00	$5.60
Buy 1	Call	$90.00	$3.40

SIG butterfly risk and reward

Net Premium / Debit: -$15.00
Max Profit (per contract): $381.59
Max Loss (per contract): -$115.00
Breakeven(s): $80.92, $88.85
Risk / Reward Ratio: 3.318

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.

SIG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SIG. 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%	-$15.00
$18.89	-77.9%	-$15.00
$37.77	-55.8%	-$15.00
$56.65	-33.7%	-$15.00
$75.53	-11.6%	-$15.00
$94.41	+10.6%	-$115.00
$113.28	+32.7%	-$115.00
$132.16	+54.8%	-$115.00
$151.04	+76.9%	-$115.00
$169.92	+99.0%	-$115.00

When traders use butterfly on SIG

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

SIG thesis for this butterfly

The market-implied 1-standard-deviation range for SIG extends from approximately $73.88 on the downside to $96.90 on the upside. A SIG long call butterfly is a pinning play: it pays maximum at the middle strike if SIG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SIG IV rank near 31.38% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SIG should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, SIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SIG-specific events.

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

Frequently asked questions

What is a butterfly on SIG?: A butterfly on SIG is the butterfly strategy applied to SIG (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 SIG stock trading near $85.39, the strikes shown on this page are snapped to the nearest listed SIG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SIG 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 SIG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 47.01%), the computed maximum profit is $381.59 per contract and the computed maximum loss is -$115.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SIG butterfly?: The breakeven for the SIG butterfly priced on this page is roughly $80.92 and $88.85 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 SIG market-implied 1-standard-deviation expected move is approximately 13.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SIG?: Butterflies on SIG are pinning bets - traders use them when they expect SIG 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 SIG implied volatility affect this butterfly?: SIG ATM IV is at 47.01% with IV rank near 31.38%, 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.