How are TDOC 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 TDOC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 77.27%), the computed maximum profit is $43.72 per contract and the computed maximum loss is -$4.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TDOC butterfly?

The breakeven for the TDOC butterfly priced on this page is roughly $8.04 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 TDOC market-implied 1-standard-deviation expected move is approximately 22.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TDOC implied volatility affect this butterfly?

TDOC ATM IV is at 77.27% with IV rank near 52.13%, 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.

TDOC Butterfly Strategy

TDOC (Teladoc Health, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NYSE.

Teladoc Health, Inc. offers remote medical services to individuals both domestically in the United States and internationally. Their extensive range of solutions covers a wide array of health needs, from routine and acute conditions to complex and long-term illnesses such as diabetes, hypertension, chronic kidney disease, cancer, congestive heart failure, and various mental health issues. The company delivers numerous programs, including virtual primary and specialized medical care, management for chronic diseases, expert second opinion services, mental wellness support, and core platform and service offerings. They serve a diverse client base, including corporations, health insurance providers, hospitals and healthcare systems, financial service companies, and individual patients. The Teladoc, Livongo, and BetterHelp brands fall under their purview. Founded in 2002, the company, which operated as Teladoc, Inc. until its renaming in August 2018, is based in Purchase, New York.

TDOC (Teladoc Health, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $1.51B, a beta of 2.14 versus the broader market, a 52-week range of 4.4-9.77, average daily share volume of 4.7M, a public-listing history dating back to 2015, approximately 5K full-time employees. These structural characteristics shape how TDOC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.14 indicates TDOC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on TDOC?

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 TDOC snapshot

As of June 30, 2026, spot at $8.52, ATM IV 77.27%, IV rank 52.13%, expected move 22.15%. The butterfly on TDOC 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 31-day expiry.

Why this butterfly structure on TDOC specifically: TDOC IV at 77.27% 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 22.15% (roughly $1.89 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TDOC expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDOC should anchor to the underlying notional of $8.52 per share and to the trader's directional view on TDOC stock.

TDOC butterfly setup

The TDOC 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 TDOC near $8.52, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TDOC chain at a 31-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 TDOC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$8.00	$1.08
Sell 2	Call	$8.50	$0.82
Buy 1	Call	$9.00	$0.60

TDOC butterfly risk and reward

Net Premium / Debit: -$4.50
Max Profit (per contract): $43.72
Max Loss (per contract): -$4.50
Breakeven(s): $8.04
Risk / Reward Ratio: 9.716

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.

TDOC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TDOC. 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	-99.9%	-$4.50
$1.89	-77.8%	-$4.50
$3.78	-55.7%	-$4.50
$5.66	-33.6%	-$4.50
$7.54	-11.5%	-$4.50
$9.42	+10.6%	-$4.50
$11.31	+32.7%	-$4.50
$13.19	+54.8%	-$4.50
$15.07	+76.9%	-$4.50
$16.95	+99.0%	-$4.50

When traders use butterfly on TDOC

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

TDOC thesis for this butterfly

The market-implied 1-standard-deviation range for TDOC extends from approximately $6.63 on the downside to $10.41 on the upside. A TDOC long call butterfly is a pinning play: it pays maximum at the middle strike if TDOC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TDOC IV rank near 52.13% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TDOC should anchor more to the directional view and the expected-move geometry. As a Healthcare name, TDOC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TDOC-specific events.

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

Frequently asked questions

What is a butterfly on TDOC?: A butterfly on TDOC is the butterfly strategy applied to TDOC (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 TDOC stock trading near $8.52, the strikes shown on this page are snapped to the nearest listed TDOC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TDOC 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 TDOC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 77.27%), the computed maximum profit is $43.72 per contract and the computed maximum loss is -$4.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TDOC butterfly?: The breakeven for the TDOC butterfly priced on this page is roughly $8.04 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 TDOC market-implied 1-standard-deviation expected move is approximately 22.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TDOC?: Butterflies on TDOC are pinning bets - traders use them when they expect TDOC 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 TDOC implied volatility affect this butterfly?: TDOC ATM IV is at 77.27% with IV rank near 52.13%, 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.