How are TCBI 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 TCBI butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.20%), the computed maximum profit is $355.97 per contract and the computed maximum loss is -$110.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TCBI butterfly?

The breakeven for the TCBI butterfly priced on this page is roughly $96.10 and $103.90 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 TCBI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TCBI implied volatility affect this butterfly?

TCBI ATM IV is at 24.20% with IV rank near 3.86%, 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.

TCBI Butterfly Strategy

TCBI (Texas Capital Bancshares, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.

Texas Capital Bancshares, Inc. serves as the holding company for Texas Capital Bank, operating as a comprehensive financial services firm that delivers tailored solutions to businesses, entrepreneurs, and individual clients. Its offerings encompass commercial banking, consumer banking, investment banking, and wealth management. The company provides businesses with various deposit accounts, such as commercial checking, lockbox, and cash concentration services, alongside digital banking tools for information access, wire transfers, ACH initiation, and account integration. For individual clients, it offers checking, savings, money market accounts, and certificates of deposit. Regarding lending, the firm extends a broad spectrum of options, including commercial loans to fund working capital, growth initiatives, acquisitions, and business insurance premiums, in addition to consumer loans. Specialized financing is available for exploration and production companies, mortgage finance, commercial real estate, and residential homebuilder projects.

TCBI (Texas Capital Bancshares, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $4.38B, a trailing P/E of 12.45, a beta of 0.67 versus the broader market, a 52-week range of 75.41-108.92, average daily share volume of 486K, a public-listing history dating back to 2003, approximately 2K full-time employees. These structural characteristics shape how TCBI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.67 indicates TCBI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TCBI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on TCBI?

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.

TCBI snapshot

As of August 14, 2026, spot at $101.18, ATM IV 24.20%, IV rank 3.86%, expected move 6.94%. The butterfly on TCBI 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 35-day expiry.

Why this butterfly structure on TCBI specifically: TCBI IV at 24.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a TCBI butterfly, with a market-implied 1-standard-deviation move of approximately 6.94% (roughly $7.02 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TCBI expiries trade a higher absolute premium for lower per-day decay. Position sizing on TCBI should anchor to the underlying notional of $101.18 per share and to the trader's directional view on TCBI stock.

TCBI butterfly setup

The TCBI 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 TCBI at $101.18 on that close, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TCBI chain at a 35-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 TCBI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$95.00	$7.40
Sell 2	Call	$100.00	$3.95
Buy 1	Call	$105.00	$1.60

TCBI butterfly risk and reward

Net Premium / Debit: -$110.00
Max Profit (per contract): $355.97
Max Loss (per contract): -$110.00
Breakeven(s): $96.10, $103.90
Risk / Reward Ratio: 3.236

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.

TCBI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TCBI. 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%	-$110.00
$22.38	-77.9%	-$110.00
$44.75	-55.8%	-$110.00
$67.12	-33.7%	-$110.00
$89.49	-11.6%	-$110.00
$111.86	+10.6%	-$110.00
$134.23	+32.7%	-$110.00
$156.60	+54.8%	-$110.00
$178.97	+76.9%	-$110.00
$201.34	+99.0%	-$110.00

When traders use butterfly on TCBI

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

TCBI thesis for this butterfly

The market-implied 1-standard-deviation range for TCBI extends from approximately $94.16 on the downside to $108.20 on the upside. A TCBI long call butterfly is a pinning play: it pays maximum at the middle strike if TCBI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TCBI IV rank near 3.86% 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 TCBI at 24.20%. As a Financial Services name, TCBI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TCBI-specific events.

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

Frequently asked questions

What is a butterfly on TCBI?: A butterfly on TCBI is the butterfly strategy applied to TCBI (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 TCBI stock at $101.18 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TCBI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are TCBI 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 TCBI butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.20%), the computed maximum profit is $355.97 per contract and the computed maximum loss is -$110.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TCBI butterfly?: The breakeven for the TCBI butterfly priced on this page is roughly $96.10 and $103.90 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 TCBI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TCBI?: Butterflies on TCBI are pinning bets - traders use them when they expect TCBI 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 TCBI implied volatility affect this butterfly?: TCBI ATM IV is at 24.20% with IV rank near 3.86%, 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.