TOST Butterfly Strategy
TOST (Toast, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.
Toast, Inc. operates a cloud-based and digital technology platform for the restaurant industry in the United States and Ireland. The company offers Toast Point of Sale (POS), a hardware product; Toast Order & Pay, which allows guests to order and pay from their mobile devices; Toast Flex that is used for on-counter order and pay, as well as used as a server station, guest kiosk, kitchen display system, or order fulfillment station; Toast Go, a handheld POS device that enhances the table turn times through tableside ordering and payment acceptance; and Toast Tap, a card reader. It also provides kitchen display system software that connects the front of the house with the kitchen staff; multi-location management software, which allows customers to manage and standardize their operations and configure menus; xtraCHEF that provides back-office tools; and Toast Flex for Kitchen, a larger format mountable piece of hardware that can be used as a kitchen screen. In addition, the company offers Toast Online Ordering & Toast TakeOut app, a software-based platform that provides restaurants to take off-premises orders directly through their branded website; First-Party Delivery services for restaurants to manage a fleet of drivers, and customize delivery hours, zones, fees, and minimum ticket sizes; Toast Delivery Services, which enables restaurants to utilize a partner network of delivery drivers; and Toast Delivery Partners services. Further, it provides loyalty programs and gift cards; payroll and team management products; business owner policy insurance and restaurant-specific add-ons; payment processing solutions; loans advanced to restaurants; purchase financing; reporting and analytics solutions; Toast Partner Connect that allows customers to discover, select, and connect their restaurant to its partners; and bi-directional APIs. The company was incorporated in 2011 and is headquartered in Boston, Massachusetts.
TOST (Toast, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $12.95B, a trailing P/E of 31.81, a beta of 1.82 versus the broader market, a 52-week range of 22.26-49.66, average daily share volume of 13.3M, a public-listing history dating back to 2021, approximately 6K full-time employees. These structural characteristics shape how TOST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.82 indicates TOST has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on TOST?
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 TOST snapshot
As of May 15, 2026, spot at $22.95, ATM IV 53.07%, IV rank 59.00%, expected move 15.22%. The butterfly on TOST 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 TOST specifically: TOST IV at 53.07% 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 15.22% (roughly $3.49 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 TOST expiries trade a higher absolute premium for lower per-day decay. Position sizing on TOST should anchor to the underlying notional of $22.95 per share and to the trader's directional view on TOST stock.
TOST butterfly setup
The TOST 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 TOST near $22.95, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TOST 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 TOST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $22.00 | $2.08 |
| Sell 2 | Call | $23.00 | $1.53 |
| Buy 1 | Call | $24.00 | $1.00 |
TOST butterfly risk and reward
- Net Premium / Debit
- -$1.00
- Max Profit (per contract)
- $91.97
- Max Loss (per contract)
- -$1.00
- Breakeven(s)
- $21.93, $23.99
- Risk / Reward Ratio
- 91.970
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.
TOST butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TOST. 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% | -$1.00 |
| $5.08 | -77.9% | -$1.00 |
| $10.16 | -55.7% | -$1.00 |
| $15.23 | -33.6% | -$1.00 |
| $20.30 | -11.5% | -$1.00 |
| $25.38 | +10.6% | -$1.00 |
| $30.45 | +32.7% | -$1.00 |
| $35.52 | +54.8% | -$1.00 |
| $40.60 | +76.9% | -$1.00 |
| $45.67 | +99.0% | -$1.00 |
When traders use butterfly on TOST
Butterflies on TOST are pinning bets - traders use them when they expect TOST 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.
TOST thesis for this butterfly
The market-implied 1-standard-deviation range for TOST extends from approximately $19.46 on the downside to $26.44 on the upside. A TOST long call butterfly is a pinning play: it pays maximum at the middle strike if TOST settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TOST IV rank near 59.00% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TOST should anchor more to the directional view and the expected-move geometry. As a Technology name, TOST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TOST-specific events.
TOST 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. TOST positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TOST alongside the broader basket even when TOST-specific fundamentals are unchanged. Always rebuild the position from current TOST chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TOST?
- A butterfly on TOST is the butterfly strategy applied to TOST (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 TOST stock trading near $22.95, the strikes shown on this page are snapped to the nearest listed TOST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TOST 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 TOST butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.07%), the computed maximum profit is $91.97 per contract and the computed maximum loss is -$1.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TOST butterfly?
- The breakeven for the TOST butterfly priced on this page is roughly $21.93 and $23.99 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 TOST market-implied 1-standard-deviation expected move is approximately 15.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TOST?
- Butterflies on TOST are pinning bets - traders use them when they expect TOST 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 TOST implied volatility affect this butterfly?
- TOST ATM IV is at 53.07% with IV rank near 59.00%, 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.