How are SJM 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 SJM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 27.20%), the computed maximum profit is $351.35 per contract and the computed maximum loss is -$595.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SJM butterfly?

The breakeven for the SJM butterfly priced on this page is roughly $110.95 and $119.06 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 SJM market-implied 1-standard-deviation expected move is approximately 7.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SJM implied volatility affect this butterfly?

SJM ATM IV is at 27.20% with IV rank near 28.25%, 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.

SJM Butterfly Strategy

SJM (The J. M. Smucker Company), in the Consumer Defensive sector, (Packaged Foods industry), listed on NYSE.

The J. M. Smucker Company is an international enterprise specializing in the production and marketing of a diverse portfolio of branded food and beverage items. Its operations are organized into three principal U.S. retail divisions: Pet Foods, Coffee, and Consumer Foods. The company's extensive product offerings encompass various coffee options, including roast, ground, single-serve, and premium blends; a wide selection of spreads such as peanut butter and fruit preserves; cooking staples like shortening and oils; convenient frozen sandwiches and snacks; and a full range of pet food and treats. Additionally, Smucker provides hot beverages, portion-controlled items, and flour products for the foodservice sector, alongside frozen handheld meals, juices, beverages, and baking ingredients.

SJM (The J. M. Smucker Company) trades in the Consumer Defensive sector, specifically Packaged Foods, with a market capitalization of approximately $12.33B, a beta of 0.26 versus the broader market, a 52-week range of 88.25-119.39, average daily share volume of 1.8M, a public-listing history dating back to 1994, approximately 9K full-time employees. These structural characteristics shape how SJM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.26 indicates SJM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SJM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SJM?

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 SJM snapshot

As of June 30, 2026, spot at $112.70, ATM IV 27.20%, IV rank 28.25%, expected move 7.80%. The butterfly on SJM 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 17-day expiry.

Why this butterfly structure on SJM specifically: SJM IV at 27.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a SJM butterfly, with a market-implied 1-standard-deviation move of approximately 7.80% (roughly $8.79 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SJM expiries trade a higher absolute premium for lower per-day decay. Position sizing on SJM should anchor to the underlying notional of $112.70 per share and to the trader's directional view on SJM stock.

SJM butterfly setup

The SJM 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 SJM near $112.70, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SJM chain at a 17-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 SJM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$105.00	$8.95
Sell 2	Call	$115.00	$1.83
Buy 1	Call	$120.00	$0.65

SJM butterfly risk and reward

Net Premium / Debit: -$595.00
Max Profit (per contract): $351.35
Max Loss (per contract): -$595.00
Breakeven(s): $110.95, $119.06
Risk / Reward Ratio: 0.590

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.

SJM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SJM. 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%	-$595.00
$24.93	-77.9%	-$595.00
$49.84	-55.8%	-$595.00
$74.76	-33.7%	-$595.00
$99.68	-11.6%	-$595.00
$124.60	+10.6%	-$95.00
$149.51	+32.7%	-$95.00
$174.43	+54.8%	-$95.00
$199.35	+76.9%	-$95.00
$224.27	+99.0%	-$95.00

When traders use butterfly on SJM

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

SJM thesis for this butterfly

The market-implied 1-standard-deviation range for SJM extends from approximately $103.91 on the downside to $121.49 on the upside. A SJM long call butterfly is a pinning play: it pays maximum at the middle strike if SJM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SJM IV rank near 28.25% 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 SJM at 27.20%. As a Consumer Defensive name, SJM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SJM-specific events.

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

Frequently asked questions

What is a butterfly on SJM?: A butterfly on SJM is the butterfly strategy applied to SJM (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 SJM stock trading near $112.70, the strikes shown on this page are snapped to the nearest listed SJM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SJM 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 SJM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 27.20%), the computed maximum profit is $351.35 per contract and the computed maximum loss is -$595.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SJM butterfly?: The breakeven for the SJM butterfly priced on this page is roughly $110.95 and $119.06 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 SJM market-implied 1-standard-deviation expected move is approximately 7.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SJM?: Butterflies on SJM are pinning bets - traders use them when they expect SJM 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 SJM implied volatility affect this butterfly?: SJM ATM IV is at 27.20% with IV rank near 28.25%, 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.