How are STLA 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 STLA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.07%), the computed maximum profit is $17.50 per contract and the computed maximum loss is -$32.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a STLA butterfly?

The breakeven for the STLA butterfly priced on this page is roughly $5.33 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 STLA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current STLA implied volatility affect this butterfly?

STLA ATM IV is at 42.07% with IV rank near 24.60%, 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.

STLA Butterfly Strategy

STLA (Stellantis N.V.), in the Consumer Cyclical sector, (Auto - Manufacturers industry), listed on NYSE.

Stellantis N.V. engages in the designing, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, and mobility services worldwide. It provides luxury and premium vehicles; global sport utility vehicles; American and European brand vehicles, as well as parts and accessories. The company also provides contract services; retail and dealer financing services; and vehicle leasing and rental services, as well as engages in after-market parts and service businesses and data businesses. It offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, DS Automobiles, Dodge, Fiat, Jeep, Maserati, Ram Trucks, Opel, Lancia, Vauxhall, Peugeot, Free2move, Share Now, Leasys, and Comau brand names through distributors and dealers. The company operates in North America, France, Brazil, Italy, Germany, the United Kingdom, Turkiye, Spain, Argentina, Belgium, Austria, Netherlands, Portugal, Poland, Algeria, Morocco, Japan, China, and internationally. Stellantis N.V. was founded in 1899 and is based in Hoofddorp, the Netherlands.

STLA (Stellantis N.V.) trades in the Consumer Cyclical sector, specifically Auto - Manufacturers, with a market capitalization of approximately $15.49B, a beta of 0.99 versus the broader market, a 52-week range of 5.25-12.22, average daily share volume of 20.1M, a public-listing history dating back to 2010, approximately 259K full-time employees. These structural characteristics shape how STLA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.99 places STLA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. STLA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on STLA?

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.

STLA snapshot

As of August 14, 2026, spot at $5.36, ATM IV 42.07%, IV rank 24.60%, expected move 12.06%. The butterfly on STLA 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 14-day expiry.

Why this butterfly structure on STLA specifically: STLA IV at 42.07% is on the cheap side of its 1-year range, which favors premium-buying structures like a STLA butterfly, with a market-implied 1-standard-deviation move of approximately 12.06% (roughly $0.65 on the underlying). The 14-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STLA expiries trade a higher absolute premium for lower per-day decay. Position sizing on STLA should anchor to the underlying notional of $5.36 per share and to the trader's directional view on STLA stock.

STLA butterfly setup

The STLA 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 STLA at $5.36 on that close, the first option leg uses a $5.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STLA chain at a 14-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 STLA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$5.00	$0.43
Sell 2	Call	$5.50	$0.10
Buy 1	Call	$5.50	$0.10

STLA butterfly risk and reward

Net Premium / Debit: -$32.50
Max Profit (per contract): $17.50
Max Loss (per contract): -$32.50
Breakeven(s): $5.33
Risk / Reward Ratio: 0.538

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.

STLA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on STLA. 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	-99.8%	-$32.50
$1.19	-77.7%	-$32.50
$2.38	-55.6%	-$32.50
$3.56	-33.5%	-$32.50
$4.75	-11.5%	-$32.50
$5.93	+10.6%	+$17.50
$7.11	+32.7%	+$17.50
$8.30	+54.8%	+$17.50
$9.48	+76.9%	+$17.50
$10.67	+99.0%	+$17.50

When traders use butterfly on STLA

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

STLA thesis for this butterfly

The market-implied 1-standard-deviation range for STLA extends from approximately $4.71 on the downside to $6.01 on the upside. A STLA long call butterfly is a pinning play: it pays maximum at the middle strike if STLA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current STLA IV rank near 24.60% 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 STLA at 42.07%. As a Consumer Cyclical name, STLA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STLA-specific events.

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

Frequently asked questions

What is a butterfly on STLA?: A butterfly on STLA is the butterfly strategy applied to STLA (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 STLA stock at $5.36 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed STLA chain strike and the premiums come straight from that session's bid/ask midpoint.
How are STLA 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 STLA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.07%), the computed maximum profit is $17.50 per contract and the computed maximum loss is -$32.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a STLA butterfly?: The breakeven for the STLA butterfly priced on this page is roughly $5.33 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 STLA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on STLA?: Butterflies on STLA are pinning bets - traders use them when they expect STLA 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 STLA implied volatility affect this butterfly?: STLA ATM IV is at 42.07% with IV rank near 24.60%, 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.