How are STNE 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 STNE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 50.60%), the computed maximum profit is $42.50 per contract and the computed maximum loss is -$57.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a STNE butterfly?

The breakeven for the STNE butterfly priced on this page is roughly $9.90 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 STNE market-implied 1-standard-deviation expected move is approximately 14.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current STNE implied volatility affect this butterfly?

STNE ATM IV is at 50.60% with IV rank near 23.70%, 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.

STNE Butterfly Strategy

STNE (StoneCo Ltd.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.

StoneCo Ltd. provides financial technology solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and technology and solutions to digital merchants through sales and technical personnel and software vendors, as well as sells solutions to brick-and-mortar and digital merchants through sales team. As of December 31, 2021, the company served approximately 1,766,100 clients primarily small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors. StoneCo Ltd. was founded in 2000 and is headquartered in George Town, the Cayman Islands. StoneCo Ltd. operates as a subsidiary of HR Holdings, LLC.

STNE (StoneCo Ltd.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $2.59B, a trailing P/E of 5.58, a beta of 1.60 versus the broader market, a 52-week range of 9.66-19.95, average daily share volume of 5.6M, a public-listing history dating back to 2018, approximately 7K full-time employees. These structural characteristics shape how STNE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.60 indicates STNE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 5.58 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. STNE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on STNE?

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 STNE snapshot

As of May 15, 2026, spot at $9.61, ATM IV 50.60%, IV rank 23.70%, expected move 14.51%. The butterfly on STNE 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 63-day expiry.

Why this butterfly structure on STNE specifically: STNE IV at 50.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a STNE butterfly, with a market-implied 1-standard-deviation move of approximately 14.51% (roughly $1.39 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STNE expiries trade a higher absolute premium for lower per-day decay. Position sizing on STNE should anchor to the underlying notional of $9.61 per share and to the trader's directional view on STNE stock.

STNE butterfly setup

The STNE 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 STNE near $9.61, the first option leg uses a $9.47 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STNE chain at a 63-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 STNE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$9.47	$0.93
Sell 2	Call	$9.47	$0.93
Buy 1	Call	$10.47	$0.50

STNE butterfly risk and reward

Net Premium / Debit: +$42.50
Max Profit (per contract): $42.50
Max Loss (per contract): -$57.50
Breakeven(s): $9.90
Risk / Reward Ratio: 0.739

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.

STNE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on STNE. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	+$42.50
$2.13	-77.8%	+$42.50
$4.26	-55.7%	+$42.50
$6.38	-33.6%	+$42.50
$8.50	-11.5%	+$42.50
$10.63	+10.6%	-$57.50
$12.75	+32.7%	-$57.50
$14.88	+54.8%	-$57.50
$17.00	+76.9%	-$57.50
$19.12	+99.0%	-$57.50

When traders use butterfly on STNE

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

STNE thesis for this butterfly

The market-implied 1-standard-deviation range for STNE extends from approximately $8.22 on the downside to $11.00 on the upside. A STNE long call butterfly is a pinning play: it pays maximum at the middle strike if STNE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current STNE IV rank near 23.70% 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 STNE at 50.60%. As a Technology name, STNE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STNE-specific events.

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

Frequently asked questions

What is a butterfly on STNE?: A butterfly on STNE is the butterfly strategy applied to STNE (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 STNE stock trading near $9.61, the strikes shown on this page are snapped to the nearest listed STNE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are STNE 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 STNE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 50.60%), the computed maximum profit is $42.50 per contract and the computed maximum loss is -$57.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a STNE butterfly?: The breakeven for the STNE butterfly priced on this page is roughly $9.90 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 STNE market-implied 1-standard-deviation expected move is approximately 14.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on STNE?: Butterflies on STNE are pinning bets - traders use them when they expect STNE 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 STNE implied volatility affect this butterfly?: STNE ATM IV is at 50.60% with IV rank near 23.70%, 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.