How are SNA 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 SNA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 21.20%), the computed maximum profit is $1,065.20 per contract and the computed maximum loss is -$897.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SNA butterfly?

The breakeven for the SNA butterfly priced on this page is roughly $388.98 and $411.03 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 SNA market-implied 1-standard-deviation expected move is approximately 6.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SNA implied volatility affect this butterfly?

SNA ATM IV is at 21.20% with IV rank near 13.21%, 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.

SNA Butterfly Strategy

SNA (Snap-on Incorporated), in the Industrials sector, (Manufacturing - Tools & Accessories industry), listed on NYSE.

Snap-on Incorporated, a global provider based in Kenosha, Wisconsin, specializes in the production and distribution of an extensive range of tools, equipment, diagnostic systems, and repair information solutions for professional users worldwide. The company operates through its Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments. Its comprehensive product portfolio includes a diverse selection of hand tools like wrenches, sockets, pliers, screwdrivers, cutting and pruning tools, and torque measuring instruments. Snap-on also supplies various power tools (cordless, pneumatic, hydraulic, and corded) and robust tool storage solutions such as chests and roll cabinets. Beyond physical tools, the firm delivers advanced diagnostic offerings, spanning handheld and computer-based products, specialized software, service and repair information, electronic parts catalogs, business management systems, point-of-sale systems, and integrated solutions for vehicle service shops. Additionally, it provides services for OEM purchasing facilitation and warranty management systems with analytics.

SNA (Snap-on Incorporated) trades in the Industrials sector, specifically Manufacturing - Tools & Accessories, with a market capitalization of approximately $20.57B, a trailing P/E of 20.14, a beta of 0.74 versus the broader market, a 52-week range of 307.47-403.35, average daily share volume of 370K, a public-listing history dating back to 2017, approximately 13K full-time employees. These structural characteristics shape how SNA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.74 places SNA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SNA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SNA?

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 SNA snapshot

As of June 30, 2026, spot at $402.39, ATM IV 21.20%, IV rank 13.21%, expected move 6.08%. The butterfly on SNA 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 SNA specifically: SNA IV at 21.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a SNA butterfly, with a market-implied 1-standard-deviation move of approximately 6.08% (roughly $24.46 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 SNA expiries trade a higher absolute premium for lower per-day decay. Position sizing on SNA should anchor to the underlying notional of $402.39 per share and to the trader's directional view on SNA stock.

SNA butterfly setup

The SNA 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 SNA near $402.39, the first option leg uses a $380.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SNA 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 SNA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$380.00	$25.15
Sell 2	Call	$400.00	$8.95
Buy 1	Call	$420.00	$1.73

SNA butterfly risk and reward

Net Premium / Debit: -$897.50
Max Profit (per contract): $1,065.20
Max Loss (per contract): -$897.50
Breakeven(s): $388.98, $411.03
Risk / Reward Ratio: 1.187

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.

SNA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SNA. 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%	-$897.50
$88.98	-77.9%	-$897.50
$177.95	-55.8%	-$897.50
$266.92	-33.7%	-$897.50
$355.89	-11.6%	-$897.50
$444.86	+10.6%	-$897.50
$533.83	+32.7%	-$897.50
$622.80	+54.8%	-$897.50
$711.77	+76.9%	-$897.50
$800.74	+99.0%	-$897.50

When traders use butterfly on SNA

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

SNA thesis for this butterfly

The market-implied 1-standard-deviation range for SNA extends from approximately $377.93 on the downside to $426.85 on the upside. A SNA long call butterfly is a pinning play: it pays maximum at the middle strike if SNA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SNA IV rank near 13.21% 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 SNA at 21.20%. As a Industrials name, SNA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SNA-specific events.

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

Frequently asked questions

What is a butterfly on SNA?: A butterfly on SNA is the butterfly strategy applied to SNA (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 SNA stock trading near $402.39, the strikes shown on this page are snapped to the nearest listed SNA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SNA 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 SNA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 21.20%), the computed maximum profit is $1,065.20 per contract and the computed maximum loss is -$897.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SNA butterfly?: The breakeven for the SNA butterfly priced on this page is roughly $388.98 and $411.03 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 SNA market-implied 1-standard-deviation expected move is approximately 6.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SNA?: Butterflies on SNA are pinning bets - traders use them when they expect SNA 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 SNA implied volatility affect this butterfly?: SNA ATM IV is at 21.20% with IV rank near 13.21%, 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.