How are TECK 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 TECK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 51.64%), the computed maximum profit is $144.82 per contract and the computed maximum loss is -$152.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TECK butterfly?

The breakeven for the TECK butterfly priced on this page is roughly $59.53 and $62.48 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 TECK market-implied 1-standard-deviation expected move is approximately 14.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TECK implied volatility affect this butterfly?

TECK ATM IV is at 51.64% with IV rank near 65.27%, 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.

TECK Butterfly Strategy

TECK (Teck Resources Limited), in the Basic Materials sector, (Industrial Materials industry), listed on NYSE.

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. It operates through Steelmaking Coal, Copper, Zinc, Energy, and Corporate segments. The company's principal products include steelmaking coal; copper, gold, blended bitumen, lead, silver, molybdenum, zinc, and zinc concentrates; chemicals, fertilizers, and other metals. It also produces indium and germanium. In addition, the company holds interest in Frontier oil sands projects in the Athabasca region of Alberta; and owns interests in exploration and development projects in Australia, Chile, Ireland, Mexico, Peru, Turkey, and the United States. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009.

TECK (Teck Resources Limited) trades in the Basic Materials sector, specifically Industrial Materials, with a market capitalization of approximately $32.18B, a trailing P/E of 24.23, a beta of 1.57 versus the broader market, a 52-week range of 30.98-67.67, average daily share volume of 3.9M, a public-listing history dating back to 2002, approximately 7K full-time employees. These structural characteristics shape how TECK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.57 indicates TECK has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TECK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on TECK?

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 TECK snapshot

As of May 15, 2026, spot at $61.33, ATM IV 51.64%, IV rank 65.27%, expected move 14.81%. The butterfly on TECK 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 28-day expiry.

Why this butterfly structure on TECK specifically: TECK IV at 51.64% 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 14.81% (roughly $9.08 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TECK expiries trade a higher absolute premium for lower per-day decay. Position sizing on TECK should anchor to the underlying notional of $61.33 per share and to the trader's directional view on TECK stock.

TECK butterfly setup

The TECK 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 TECK near $61.33, the first option leg uses a $58.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TECK chain at a 28-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 TECK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$58.00	$5.65
Sell 2	Call	$61.00	$3.63
Buy 1	Call	$64.00	$3.13

TECK butterfly risk and reward

Net Premium / Debit: -$152.50
Max Profit (per contract): $144.82
Max Loss (per contract): -$152.50
Breakeven(s): $59.53, $62.48
Risk / Reward Ratio: 0.950

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.

TECK butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TECK. 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%	-$152.50
$13.57	-77.9%	-$152.50
$27.13	-55.8%	-$152.50
$40.69	-33.7%	-$152.50
$54.25	-11.5%	-$152.50
$67.81	+10.6%	-$152.50
$81.37	+32.7%	-$152.50
$94.93	+54.8%	-$152.50
$108.48	+76.9%	-$152.50
$122.04	+99.0%	-$152.50

When traders use butterfly on TECK

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

TECK thesis for this butterfly

The market-implied 1-standard-deviation range for TECK extends from approximately $52.25 on the downside to $70.41 on the upside. A TECK long call butterfly is a pinning play: it pays maximum at the middle strike if TECK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TECK IV rank near 65.27% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TECK should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, TECK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TECK-specific events.

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

Frequently asked questions

What is a butterfly on TECK?: A butterfly on TECK is the butterfly strategy applied to TECK (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 TECK stock trading near $61.33, the strikes shown on this page are snapped to the nearest listed TECK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TECK 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 TECK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 51.64%), the computed maximum profit is $144.82 per contract and the computed maximum loss is -$152.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TECK butterfly?: The breakeven for the TECK butterfly priced on this page is roughly $59.53 and $62.48 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 TECK market-implied 1-standard-deviation expected move is approximately 14.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TECK?: Butterflies on TECK are pinning bets - traders use them when they expect TECK 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 TECK implied volatility affect this butterfly?: TECK ATM IV is at 51.64% with IV rank near 65.27%, 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.