How are TRNS 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 TRNS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.80%), the computed maximum profit is $424.91 per contract and the computed maximum loss is -$65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TRNS butterfly?

The breakeven for the TRNS butterfly priced on this page is roughly $85.65 and $94.35 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 TRNS market-implied 1-standard-deviation expected move is approximately 11.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TRNS implied volatility affect this butterfly?

TRNS ATM IV is at 40.80% with IV rank near 15.12%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

TRNS Butterfly Strategy

TRNS (Transcat, Inc.), in the Industrials sector, (Industrial - Distribution industry), listed on NASDAQ.

Transcat, Inc. offers comprehensive calibration and instrument services for laboratories, serving clients across the United States, Canada, and other international markets. The company operates through two distinct divisions: Service and Distribution. The Service division delivers a wide array of offerings, including precision calibration, equipment repair, thorough inspections, analytical qualification, preventive maintenance, and expert consulting. This segment also features its proprietary software, CalTrak, designed to manage documents and assets while streamlining the operational workflow for its calibration centers and customer equipment. Additionally, its "Compliance, Control and Cost" online portal grants customers web-based asset management capabilities and a secure, off-site repository for calibration and other service records. The Distribution division focuses on the sale and rental of instruments for testing, measurement, and control purposes.

TRNS (Transcat, Inc.) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $861.5M, a trailing P/E of 131.01, a beta of 0.70 versus the broader market, a 52-week range of 50.23-94.76, average daily share volume of 161K, a public-listing history dating back to 1977, approximately 1K full-time employees. These structural characteristics shape how TRNS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.70 places TRNS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 131.01 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a butterfly on TRNS?

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 TRNS snapshot

As of June 30, 2026, spot at $91.27, ATM IV 40.80%, IV rank 15.12%, expected move 11.70%. The butterfly on TRNS 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 80-day expiry.

Why this butterfly structure on TRNS specifically: TRNS IV at 40.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a TRNS butterfly, with a market-implied 1-standard-deviation move of approximately 11.70% (roughly $10.68 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TRNS expiries trade a higher absolute premium for lower per-day decay. Position sizing on TRNS should anchor to the underlying notional of $91.27 per share and to the trader's directional view on TRNS stock.

TRNS butterfly setup

The TRNS 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 TRNS near $91.27, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TRNS chain at a 80-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 TRNS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$85.00	$12.30
Sell 2	Call	$90.00	$9.25
Buy 1	Call	$95.00	$6.85

TRNS butterfly risk and reward

Net Premium / Debit: -$65.00
Max Profit (per contract): $424.91
Max Loss (per contract): -$65.00
Breakeven(s): $85.65, $94.35
Risk / Reward Ratio: 6.537

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.

TRNS butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TRNS. 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%	-$65.00
$20.19	-77.9%	-$65.00
$40.37	-55.8%	-$65.00
$60.55	-33.7%	-$65.00
$80.73	-11.6%	-$65.00
$100.91	+10.6%	-$65.00
$121.09	+32.7%	-$65.00
$141.26	+54.8%	-$65.00
$161.44	+76.9%	-$65.00
$181.62	+99.0%	-$65.00

When traders use butterfly on TRNS

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

TRNS thesis for this butterfly

The market-implied 1-standard-deviation range for TRNS extends from approximately $80.59 on the downside to $101.95 on the upside. A TRNS long call butterfly is a pinning play: it pays maximum at the middle strike if TRNS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TRNS IV rank near 15.12% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on TRNS at 40.80%. As a Industrials name, TRNS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TRNS-specific events.

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

Frequently asked questions

What is a butterfly on TRNS?: A butterfly on TRNS is the butterfly strategy applied to TRNS (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 TRNS stock trading near $91.27, the strikes shown on this page are snapped to the nearest listed TRNS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TRNS 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 TRNS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.80%), the computed maximum profit is $424.91 per contract and the computed maximum loss is -$65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TRNS butterfly?: The breakeven for the TRNS butterfly priced on this page is roughly $85.65 and $94.35 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 TRNS market-implied 1-standard-deviation expected move is approximately 11.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TRNS?: Butterflies on TRNS are pinning bets - traders use them when they expect TRNS 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 TRNS implied volatility affect this butterfly?: TRNS ATM IV is at 40.80% with IV rank near 15.12%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.