How are TDY 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 TDY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.40%), the computed maximum profit is $2,336.74 per contract and the computed maximum loss is -$1,510.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TDY butterfly?

The breakeven for the TDY butterfly priced on this page is roughly $645.10 and $694.90 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 TDY market-implied 1-standard-deviation expected move is approximately 8.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TDY implied volatility affect this butterfly?

TDY ATM IV is at 30.40% with IV rank near 64.79%, 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.

TDY Butterfly Strategy

TDY (Teledyne Technologies Incorporated), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NYSE.

Teledyne Technologies Incorporated develops and supplies advanced technologies primarily for industrial sectors experiencing growth, serving customers across the United States, Canada, the United Kingdom, Belgium, the Netherlands, and other international markets. The company's Instrumentation division provides sophisticated monitoring and control equipment for use in marine environments, environmental management, various industrial processes, and other specialized applications. It also offers electronic tools for testing and measurement, alongside connectivity devices for power and communication within distributed instrumentation setups and sensor networks. Its Digital Imaging segment specializes in a broad range of imaging solutions. This includes visible spectrum sensors and digital cameras vital for industrial machine vision, automated quality control, as well as medical, research, and scientific purposes. Additionally, it offers infrared and X-ray imaging technologies for industrial, governmental, and healthcare applications.

TDY (Teledyne Technologies Incorporated) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $28.92B, a trailing P/E of 31.31, a beta of 0.94 versus the broader market, a 52-week range of 483.02-693.38, average daily share volume of 332K, a public-listing history dating back to 1999, approximately 15K full-time employees. These structural characteristics shape how TDY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.94 places TDY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on TDY?

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 TDY snapshot

As of June 30, 2026, spot at $668.17, ATM IV 30.40%, IV rank 64.79%, expected move 8.72%. The butterfly on TDY 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 17-day expiry.

Why this butterfly structure on TDY specifically: TDY IV at 30.40% 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 8.72% (roughly $58.23 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TDY expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDY should anchor to the underlying notional of $668.17 per share and to the trader's directional view on TDY stock.

TDY butterfly setup

The TDY 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 TDY near $668.17, the first option leg uses a $630.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TDY chain at a 17-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 TDY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$630.00	$45.50
Sell 2	Call	$670.00	$18.50
Buy 1	Call	$700.00	$6.60

TDY butterfly risk and reward

Net Premium / Debit: -$1,510.00
Max Profit (per contract): $2,336.74
Max Loss (per contract): -$1,510.00
Breakeven(s): $645.10, $694.90
Risk / Reward Ratio: 1.548

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.

TDY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TDY. 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%	-$1,510.00
$147.74	-77.9%	-$1,510.00
$295.48	-55.8%	-$1,510.00
$443.21	-33.7%	-$1,510.00
$590.95	-11.6%	-$1,510.00
$738.68	+10.6%	-$510.00
$886.42	+32.7%	-$510.00
$1,034.15	+54.8%	-$510.00
$1,181.89	+76.9%	-$510.00
$1,329.62	+99.0%	-$510.00

When traders use butterfly on TDY

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

TDY thesis for this butterfly

The market-implied 1-standard-deviation range for TDY extends from approximately $609.94 on the downside to $726.40 on the upside. A TDY long call butterfly is a pinning play: it pays maximum at the middle strike if TDY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TDY IV rank near 64.79% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TDY should anchor more to the directional view and the expected-move geometry. As a Technology name, TDY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TDY-specific events.

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

Frequently asked questions

What is a butterfly on TDY?: A butterfly on TDY is the butterfly strategy applied to TDY (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 TDY stock trading near $668.17, the strikes shown on this page are snapped to the nearest listed TDY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TDY 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 TDY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.40%), the computed maximum profit is $2,336.74 per contract and the computed maximum loss is -$1,510.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TDY butterfly?: The breakeven for the TDY butterfly priced on this page is roughly $645.10 and $694.90 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 TDY market-implied 1-standard-deviation expected move is approximately 8.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TDY?: Butterflies on TDY are pinning bets - traders use them when they expect TDY 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 TDY implied volatility affect this butterfly?: TDY ATM IV is at 30.40% with IV rank near 64.79%, 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.