How are TRU 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 TRU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 41.60%), the computed maximum profit is $280.13 per contract and the computed maximum loss is -$197.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TRU butterfly?

The breakeven for the TRU butterfly priced on this page is roughly $69.48 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 TRU market-implied 1-standard-deviation expected move is approximately 11.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TRU implied volatility affect this butterfly?

TRU ATM IV is at 41.60% with IV rank near 35.46%, 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.

TRU Butterfly Strategy

TRU (TransUnion), in the Industrials sector, (Specialty Business Services industry), listed on NYSE.

TransUnion operates as a global consumer credit reporting agency that provides risk and information solutions. The company operates in two segments, U.S. Markets and International. The U.S. Markets segment provides credit reporting, credit marketing, analytics and consulting, identity verification, and authentication and debt recovery solutions for financial services industry; and onboarding and transaction processing products, scoring and analytic products, marketing solutions, fraud and identity management solutions, and customer retention solutions, as well select market-specific solutions for insurance, technology, retail and e-commerce, telecommunications, media, tenant and employment screening, collections, and public sectors. It also offers credit reports, scores, and freezes credit monitoring, identity protection and resolution, and financial management for consumers, as well as helps businesses respond to data breach events through its own websites, as well as channels.

TRU (TransUnion) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $13.56B, a trailing P/E of 19.24, a beta of 1.55 versus the broader market, a 52-week range of 63.37-99.39, average daily share volume of 2.3M, a public-listing history dating back to 2015, approximately 13K full-time employees. These structural characteristics shape how TRU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.55 indicates TRU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TRU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on TRU?

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 TRU snapshot

As of June 30, 2026, spot at $71.91, ATM IV 41.60%, IV rank 35.46%, expected move 11.93%. The butterfly on TRU 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 17-day expiry.

Why this butterfly structure on TRU specifically: TRU IV at 41.60% 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 11.93% (roughly $8.58 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TRU expiries trade a higher absolute premium for lower per-day decay. Position sizing on TRU should anchor to the underlying notional of $71.91 per share and to the trader's directional view on TRU stock.

TRU butterfly setup

The TRU 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 TRU near $71.91, the first option leg uses a $67.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TRU chain at a 17-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 TRU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$67.50	$5.50
Sell 2	Call	$72.50	$2.50
Buy 1	Call	$75.00	$1.48

TRU butterfly risk and reward

Net Premium / Debit: -$197.50
Max Profit (per contract): $280.13
Max Loss (per contract): -$197.50
Breakeven(s): $69.48
Risk / Reward Ratio: 1.418

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.

TRU butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TRU. 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%	-$197.50
$15.91	-77.9%	-$197.50
$31.81	-55.8%	-$197.50
$47.71	-33.7%	-$197.50
$63.60	-11.6%	-$197.50
$79.50	+10.6%	+$52.50
$95.40	+32.7%	+$52.50
$111.30	+54.8%	+$52.50
$127.20	+76.9%	+$52.50
$143.10	+99.0%	+$52.50

When traders use butterfly on TRU

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

TRU thesis for this butterfly

The market-implied 1-standard-deviation range for TRU extends from approximately $63.33 on the downside to $80.49 on the upside. A TRU long call butterfly is a pinning play: it pays maximum at the middle strike if TRU settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TRU IV rank near 35.46% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TRU should anchor more to the directional view and the expected-move geometry. As a Industrials name, TRU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TRU-specific events.

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

Frequently asked questions

What is a butterfly on TRU?: A butterfly on TRU is the butterfly strategy applied to TRU (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 TRU stock trading near $71.91, the strikes shown on this page are snapped to the nearest listed TRU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TRU 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 TRU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 41.60%), the computed maximum profit is $280.13 per contract and the computed maximum loss is -$197.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TRU butterfly?: The breakeven for the TRU butterfly priced on this page is roughly $69.48 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 TRU market-implied 1-standard-deviation expected move is approximately 11.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TRU?: Butterflies on TRU are pinning bets - traders use them when they expect TRU 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 TRU implied volatility affect this butterfly?: TRU ATM IV is at 41.60% with IV rank near 35.46%, 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.