How are TNK 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 TNK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 45.50%), the computed maximum profit is $205.00 per contract and the computed maximum loss is -$295.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TNK butterfly?

The breakeven for the TNK butterfly priced on this page is roughly $77.05 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 TNK market-implied 1-standard-deviation expected move is approximately 13.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TNK implied volatility affect this butterfly?

TNK ATM IV is at 45.50% with IV rank near 38.48%, 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.

TNK Butterfly Strategy

TNK (Teekay Tankers Ltd.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.

Teekay Tankers Ltd. provides marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; and offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products, as well as liquid gases and various other products. It also provides tanker commercial and technical management services. As of December 31, 2021, the company owned and leased 48 double-hull oil tankers, time-chartered in two Aframax tankers, and one LR2 tanker. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Canada.

TNK (Teekay Tankers Ltd.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $2.68B, a trailing P/E of 7.66, a beta of -0.23 versus the broader market, a 52-week range of 41.05-83.99, average daily share volume of 560K, a public-listing history dating back to 2007, approximately 2K full-time employees. These structural characteristics shape how TNK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.23 indicates TNK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 7.66 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. TNK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on TNK?

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 TNK snapshot

As of May 15, 2026, spot at $77.16, ATM IV 45.50%, IV rank 38.48%, expected move 13.04%. The butterfly on TNK 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 98-day expiry.

Why this butterfly structure on TNK specifically: TNK IV at 45.50% 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 13.04% (roughly $10.07 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TNK expiries trade a higher absolute premium for lower per-day decay. Position sizing on TNK should anchor to the underlying notional of $77.16 per share and to the trader's directional view on TNK stock.

TNK butterfly setup

The TNK 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 TNK near $77.16, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TNK chain at a 98-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 TNK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$75.00	$8.15
Sell 2	Call	$75.00	$8.15
Buy 1	Call	$80.00	$6.10

TNK butterfly risk and reward

Net Premium / Debit: +$205.00
Max Profit (per contract): $205.00
Max Loss (per contract): -$295.00
Breakeven(s): $77.05
Risk / Reward Ratio: 0.695

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.

TNK butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TNK. 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%	+$205.00
$17.07	-77.9%	+$205.00
$34.13	-55.8%	+$205.00
$51.19	-33.7%	+$205.00
$68.25	-11.6%	+$205.00
$85.31	+10.6%	-$295.00
$102.37	+32.7%	-$295.00
$119.43	+54.8%	-$295.00
$136.49	+76.9%	-$295.00
$153.54	+99.0%	-$295.00

When traders use butterfly on TNK

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

TNK thesis for this butterfly

The market-implied 1-standard-deviation range for TNK extends from approximately $67.09 on the downside to $87.23 on the upside. A TNK long call butterfly is a pinning play: it pays maximum at the middle strike if TNK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TNK IV rank near 38.48% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TNK should anchor more to the directional view and the expected-move geometry. As a Energy name, TNK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TNK-specific events.

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

Frequently asked questions

What is a butterfly on TNK?: A butterfly on TNK is the butterfly strategy applied to TNK (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 TNK stock trading near $77.16, the strikes shown on this page are snapped to the nearest listed TNK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TNK 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 TNK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 45.50%), the computed maximum profit is $205.00 per contract and the computed maximum loss is -$295.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TNK butterfly?: The breakeven for the TNK butterfly priced on this page is roughly $77.05 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 TNK market-implied 1-standard-deviation expected move is approximately 13.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TNK?: Butterflies on TNK are pinning bets - traders use them when they expect TNK 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 TNK implied volatility affect this butterfly?: TNK ATM IV is at 45.50% with IV rank near 38.48%, 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.