How are SKYT 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 SKYT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 52.43%), the computed maximum profit is $121.93 per contract and the computed maximum loss is -$65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SKYT butterfly?

The breakeven for the SKYT butterfly priced on this page is roughly $33.65 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 SKYT market-implied 1-standard-deviation expected move is approximately 15.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SKYT implied volatility affect this butterfly?

SKYT ATM IV is at 52.43% with IV rank near 24.48%, 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.

SKYT Butterfly Strategy

SKYT (SkyWater Technology, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

SkyWater Technology, Inc., alongside its subsidiaries, operates within the semiconductor sector, providing both development and fabrication services for microelectronic components. The company collaborates closely with clients, offering extensive engineering and process design support to co-create advanced technologies. Furthermore, it undertakes the manufacturing of various silicon-based devices, including analog and mixed-signal integrated circuits, discrete power components, microelectromechanical systems (MEMS), and radiation-hardened chips. Its clientele spans a diverse array of industries such as computing, aerospace and defense, automotive, bio-health, consumer electronics, and industrial Internet of Things (IoT) applications. Established in 2017, the firm's main offices are located in Bloomington, Minnesota.

SKYT (SkyWater Technology, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $1.72B, a trailing P/E of 14.95, a beta of 3.32 versus the broader market, a 52-week range of 8.49-39.93, average daily share volume of 1.1M, a public-listing history dating back to 2021, approximately 702 full-time employees. These structural characteristics shape how SKYT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.32 indicates SKYT 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 SKYT?

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 SKYT snapshot

As of June 30, 2026, spot at $34.69, ATM IV 52.43%, IV rank 24.48%, expected move 15.03%. The butterfly on SKYT 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 31-day expiry.

Why this butterfly structure on SKYT specifically: SKYT IV at 52.43% is on the cheap side of its 1-year range, which favors premium-buying structures like a SKYT butterfly, with a market-implied 1-standard-deviation move of approximately 15.03% (roughly $5.21 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SKYT expiries trade a higher absolute premium for lower per-day decay. Position sizing on SKYT should anchor to the underlying notional of $34.69 per share and to the trader's directional view on SKYT stock.

SKYT butterfly setup

The SKYT 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 SKYT near $34.69, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SKYT chain at a 31-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 SKYT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$33.00	$3.18
Sell 2	Call	$35.00	$2.25
Buy 1	Call	$36.00	$1.98

SKYT butterfly risk and reward

Net Premium / Debit: -$65.00
Max Profit (per contract): $121.93
Max Loss (per contract): -$65.00
Breakeven(s): $33.65
Risk / Reward Ratio: 1.876

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.

SKYT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SKYT. 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%	-$65.00
$7.68	-77.9%	-$65.00
$15.35	-55.8%	-$65.00
$23.02	-33.6%	-$65.00
$30.69	-11.5%	-$65.00
$38.36	+10.6%	+$35.00
$46.02	+32.7%	+$35.00
$53.69	+54.8%	+$35.00
$61.36	+76.9%	+$35.00
$69.03	+99.0%	+$35.00

When traders use butterfly on SKYT

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

SKYT thesis for this butterfly

The market-implied 1-standard-deviation range for SKYT extends from approximately $29.48 on the downside to $39.90 on the upside. A SKYT long call butterfly is a pinning play: it pays maximum at the middle strike if SKYT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SKYT IV rank near 24.48% 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 SKYT at 52.43%. As a Technology name, SKYT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SKYT-specific events.

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

Frequently asked questions

What is a butterfly on SKYT?: A butterfly on SKYT is the butterfly strategy applied to SKYT (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 SKYT stock trading near $34.69, the strikes shown on this page are snapped to the nearest listed SKYT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SKYT 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 SKYT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 52.43%), the computed maximum profit is $121.93 per contract and the computed maximum loss is -$65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SKYT butterfly?: The breakeven for the SKYT butterfly priced on this page is roughly $33.65 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 SKYT market-implied 1-standard-deviation expected move is approximately 15.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SKYT?: Butterflies on SKYT are pinning bets - traders use them when they expect SKYT 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 SKYT implied volatility affect this butterfly?: SKYT ATM IV is at 52.43% with IV rank near 24.48%, 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.