How are SWKS 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 SWKS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 46.50%), the computed maximum profit is $285.34 per contract and the computed maximum loss is -$200.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SWKS butterfly?

The breakeven for the SWKS butterfly priced on this page is roughly $67.00 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 SWKS market-implied 1-standard-deviation expected move is approximately 13.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SWKS implied volatility affect this butterfly?

SWKS ATM IV is at 46.50% with IV rank near 34.60%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

SWKS Butterfly Strategy

SWKS (Skyworks Solutions, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and rest of Asia-Pacific. Its product portfolio includes amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, circulators/isolators, DC/DC converters, demodulators, detectors, diodes, wireless analog system on chip products, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, receivers, switches, synthesizers, timing devices, technical ceramics, voltage controlled oscillators/synthesizers, and voltage regulators. The company provides its products for use in the aerospace, automotive, broadband, cellular infrastructure, connected home, entertainment and gaming, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. The company was incorporated in 1962 and is headquartered in Irvine, California.

SWKS (Skyworks Solutions, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $10.25B, a trailing P/E of 28.35, a beta of 1.48 versus the broader market, a 52-week range of 51.93-90.9, average daily share volume of 3.6M, a public-listing history dating back to 1984, approximately 10K full-time employees. These structural characteristics shape how SWKS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.48 indicates SWKS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SWKS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SWKS?

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 SWKS snapshot

As of May 15, 2026, spot at $69.10, ATM IV 46.50%, IV rank 34.60%, expected move 13.33%. The butterfly on SWKS 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 34-day expiry.

Why this butterfly structure on SWKS specifically: SWKS IV at 46.50% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 13.33% (roughly $9.21 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SWKS expiries trade a higher absolute premium for lower per-day decay. Position sizing on SWKS should anchor to the underlying notional of $69.10 per share and to the trader's directional view on SWKS stock.

SWKS butterfly setup

The SWKS 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 SWKS near $69.10, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SWKS chain at a 34-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 SWKS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$65.00	$6.15
Sell 2	Call	$70.00	$3.35
Buy 1	Call	$72.50	$2.55

SWKS butterfly risk and reward

Net Premium / Debit: -$200.00
Max Profit (per contract): $285.34
Max Loss (per contract): -$200.00
Breakeven(s): $67.00
Risk / Reward Ratio: 1.427

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.

SWKS butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SWKS. 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	-100.0%	-$200.00
$15.29	-77.9%	-$200.00
$30.56	-55.8%	-$200.00
$45.84	-33.7%	-$200.00
$61.12	-11.5%	-$200.00
$76.40	+10.6%	+$50.00
$91.67	+32.7%	+$50.00
$106.95	+54.8%	+$50.00
$122.23	+76.9%	+$50.00
$137.51	+99.0%	+$50.00

When traders use butterfly on SWKS

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

SWKS thesis for this butterfly

The market-implied 1-standard-deviation range for SWKS extends from approximately $59.89 on the downside to $78.31 on the upside. A SWKS long call butterfly is a pinning play: it pays maximum at the middle strike if SWKS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SWKS IV rank near 34.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SWKS should anchor more to the directional view and the expected-move geometry. As a Technology name, SWKS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SWKS-specific events.

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

Frequently asked questions

What is a butterfly on SWKS?: A butterfly on SWKS is the butterfly strategy applied to SWKS (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 SWKS stock trading near $69.10, the strikes shown on this page are snapped to the nearest listed SWKS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SWKS 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 SWKS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 46.50%), the computed maximum profit is $285.34 per contract and the computed maximum loss is -$200.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SWKS butterfly?: The breakeven for the SWKS butterfly priced on this page is roughly $67.00 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 SWKS market-implied 1-standard-deviation expected move is approximately 13.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SWKS?: Butterflies on SWKS are pinning bets - traders use them when they expect SWKS 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 SWKS implied volatility affect this butterfly?: SWKS ATM IV is at 46.50% with IV rank near 34.60%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.