How are TJX 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 TJX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 23.24%), the computed maximum profit is $416.06 per contract and the computed maximum loss is -$510.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TJX butterfly?

The breakeven for the TJX butterfly priced on this page is roughly $144.82 and $154.90 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 TJX market-implied 1-standard-deviation expected move is approximately 6.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TJX implied volatility affect this butterfly?

TJX ATM IV is at 23.24% with IV rank near 56.22%, 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.

TJX Butterfly Strategy

TJX (The TJX Companies, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NYSE.

The TJX Companies, Inc., alongside its various associated businesses, functions as a major discount retailer focusing on clothing and household decor. Its operations are organized into four primary divisions: Marmaxx, HomeGoods, TJX Canada, and TJX International. The enterprise markets an extensive selection of goods, including clothing for all family members (such as shoes and complementary items); a broad array of home furnishings and accessories (ranging from essential household goods, furniture, floor coverings, and lighting fixtures to gift items, soft textiles, decorative pieces, dining wares, and kitchen utensils), alongside growing departments for pet supplies, children's products, and gourmet foodstuffs. Jewelry, additional accessories, and various general merchandise are also available. By the close of February 23, 2022, TJX maintained a considerable retail network across several continents. In the United States, this footprint included 1,284 T.J.

TJX (The TJX Companies, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $171.55B, a trailing P/E of 30.04, a beta of 0.62 versus the broader market, a 52-week range of 119.84-170, average daily share volume of 5.4M, a public-listing history dating back to 1987, approximately 364K full-time employees. These structural characteristics shape how TJX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.62 indicates TJX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TJX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on TJX?

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 TJX snapshot

As of June 30, 2026, spot at $151.54, ATM IV 23.24%, IV rank 56.22%, expected move 6.66%. The butterfly on TJX 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 TJX specifically: TJX IV at 23.24% 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 6.66% (roughly $10.10 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 TJX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TJX should anchor to the underlying notional of $151.54 per share and to the trader's directional view on TJX stock.

TJX butterfly setup

The TJX 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 TJX near $151.54, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TJX 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 TJX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$145.00	$9.05
Sell 2	Call	$150.00	$5.20
Buy 1	Call	$160.00	$1.45

TJX butterfly risk and reward

Net Premium / Debit: -$10.00
Max Profit (per contract): $416.06
Max Loss (per contract): -$510.00
Breakeven(s): $144.82, $154.90
Risk / Reward Ratio: 0.816

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.

TJX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TJX. 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%	-$10.00
$33.52	-77.9%	-$10.00
$67.02	-55.8%	-$10.00
$100.53	-33.7%	-$10.00
$134.03	-11.6%	-$10.00
$167.54	+10.6%	-$510.00
$201.04	+32.7%	-$510.00
$234.55	+54.8%	-$510.00
$268.05	+76.9%	-$510.00
$301.56	+99.0%	-$510.00

When traders use butterfly on TJX

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

TJX thesis for this butterfly

The market-implied 1-standard-deviation range for TJX extends from approximately $141.44 on the downside to $161.64 on the upside. A TJX long call butterfly is a pinning play: it pays maximum at the middle strike if TJX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TJX IV rank near 56.22% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TJX should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, TJX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TJX-specific events.

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

Frequently asked questions

What is a butterfly on TJX?: A butterfly on TJX is the butterfly strategy applied to TJX (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 TJX stock trading near $151.54, the strikes shown on this page are snapped to the nearest listed TJX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TJX 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 TJX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 23.24%), the computed maximum profit is $416.06 per contract and the computed maximum loss is -$510.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TJX butterfly?: The breakeven for the TJX butterfly priced on this page is roughly $144.82 and $154.90 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 TJX market-implied 1-standard-deviation expected move is approximately 6.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TJX?: Butterflies on TJX are pinning bets - traders use them when they expect TJX 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 TJX implied volatility affect this butterfly?: TJX ATM IV is at 23.24% with IV rank near 56.22%, 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.