How are TMUS 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 TMUS butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.50%), the computed maximum profit is $551.51 per contract and the computed maximum loss is -$397.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TMUS butterfly?

The breakeven for the TMUS butterfly priced on this page is roughly $178.98 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 TMUS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TMUS implied volatility affect this butterfly?

TMUS ATM IV is at 27.50% with IV rank near 41.36%, 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.

TMUS Butterfly Strategy

TMUS (T-Mobile US, Inc.), in the Communication Services sector, (Telecommunications Services industry), listed on NASDAQ.

T-Mobile US, Inc., alongside its subsidiaries, offers mobile telecommunications services across the United States, Puerto Rico, and the U.S. Virgin Islands. Catering to approximately 108.7 million subscribers, the company delivers essential voice, messaging, and data connectivity to customers in postpaid, prepaid, and wholesale segments. Beyond services, T-Mobile also supplies a broad array of wireless devices, such as smartphones, wearables, tablets, and other mobile communication gadgets, along with associated accessories. These offerings are marketed under both the T-Mobile and Metro by T-Mobile brands. Direct distribution occurs through its proprietary retail stores, the T-Mobile mobile application, customer service channels, and its official online platforms.

TMUS (T-Mobile US, Inc.) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $190.00B, a trailing P/E of 18.15, a beta of 0.33 versus the broader market, a 52-week range of 165.66-261.56, average daily share volume of 5.7M, a public-listing history dating back to 2007, approximately 75K full-time employees. These structural characteristics shape how TMUS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.33 indicates TMUS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TMUS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on TMUS?

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.

TMUS snapshot

As of August 14, 2026, spot at $182.75, ATM IV 27.50%, IV rank 41.36%, expected move 7.88%. The butterfly on TMUS 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 28-day expiry.

Why this butterfly structure on TMUS specifically: TMUS IV at 27.50% 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 7.88% (roughly $14.41 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 TMUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMUS should anchor to the underlying notional of $182.75 per share and to the trader's directional view on TMUS stock.

TMUS butterfly setup

The TMUS 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 TMUS at $182.75 on that close, the first option leg uses a $175.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMUS 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 TMUS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$175.00	$10.10
Sell 2	Call	$185.00	$4.35
Buy 1	Call	$190.00	$2.58

TMUS butterfly risk and reward

Net Premium / Debit: -$397.50
Max Profit (per contract): $551.51
Max Loss (per contract): -$397.50
Breakeven(s): $178.98
Risk / Reward Ratio: 1.387

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.

TMUS butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TMUS. 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%	-$397.50
$40.42	-77.9%	-$397.50
$80.82	-55.8%	-$397.50
$121.23	-33.7%	-$397.50
$161.63	-11.6%	-$397.50
$202.04	+10.6%	+$102.50
$242.45	+32.7%	+$102.50
$282.85	+54.8%	+$102.50
$323.26	+76.9%	+$102.50
$363.66	+99.0%	+$102.50

When traders use butterfly on TMUS

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

TMUS thesis for this butterfly

The market-implied 1-standard-deviation range for TMUS extends from approximately $168.34 on the downside to $197.16 on the upside. A TMUS long call butterfly is a pinning play: it pays maximum at the middle strike if TMUS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TMUS IV rank near 41.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TMUS should anchor more to the directional view and the expected-move geometry. As a Communication Services name, TMUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMUS-specific events.

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

Frequently asked questions

What is a butterfly on TMUS?: A butterfly on TMUS is the butterfly strategy applied to TMUS (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 TMUS stock at $182.75 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TMUS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are TMUS 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 TMUS butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.50%), the computed maximum profit is $551.51 per contract and the computed maximum loss is -$397.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TMUS butterfly?: The breakeven for the TMUS butterfly priced on this page is roughly $178.98 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 TMUS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TMUS?: Butterflies on TMUS are pinning bets - traders use them when they expect TMUS 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 TMUS implied volatility affect this butterfly?: TMUS ATM IV is at 27.50% with IV rank near 41.36%, 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.