How are TSCO 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 TSCO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 51.95%), the computed maximum profit is $120.85 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TSCO butterfly?

The breakeven for the TSCO butterfly priced on this page is roughly $30.70 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 TSCO market-implied 1-standard-deviation expected move is approximately 14.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TSCO implied volatility affect this butterfly?

TSCO ATM IV is at 51.95% with IV rank near 97.93%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

TSCO Butterfly Strategy

TSCO (Tractor Supply Company), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NASDAQ.

Tractor Supply Company functions as a prominent retailer, catering to the rural lifestyle demographic throughout the United States. Its extensive product catalog encompasses items crucial for the health, well-being, development, and enclosure of equine, livestock, pets, and small animals. Additionally, it stocks a variety of hardware, truck, towing, and tool supplies. Shoppers can also find seasonal goods like heating solutions, gardening equipment, power tools, novelty gifts, and children's toys, alongside workwear, casual apparel, footwear, and essential maintenance products designed for agricultural and general rural applications. These offerings are made available under a diverse portfolio of private label and proprietary brands, including 4health, Producer's Pride, American Farmworks, Red Shed, Bit & Bridle, Redstone, Blue Mountain, Retriever, C.E. Schmidt, Ridgecut, Countyline, Royal Wing, Dumor, Strive, Groundwork, Traveller, Huskee, Treeline, JobSmart, TSC Tractor Supply Co, Paws & Claws, and Untamed.

TSCO (Tractor Supply Company) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $16.37B, a trailing P/E of 15.19, a beta of 0.46 versus the broader market, a 52-week range of 28.36-63.99, average daily share volume of 12.0M, a public-listing history dating back to 1994, approximately 26K full-time employees. These structural characteristics shape how TSCO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.46 indicates TSCO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TSCO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on TSCO?

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 TSCO snapshot

As of June 30, 2026, spot at $31.61, ATM IV 51.95%, IV rank 97.93%, expected move 14.89%. The butterfly on TSCO 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 31-day expiry.

Why this butterfly structure on TSCO specifically: TSCO IV at 51.95% is rich versus its 1-year range, which makes a premium-buying TSCO butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 14.89% (roughly $4.71 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TSCO expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSCO should anchor to the underlying notional of $31.61 per share and to the trader's directional view on TSCO stock.

TSCO butterfly setup

The TSCO 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 TSCO near $31.61, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSCO chain at a 31-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 TSCO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$30.00	$2.93
Sell 2	Call	$32.00	$1.78
Buy 1	Call	$33.00	$1.33

TSCO butterfly risk and reward

Net Premium / Debit: -$70.00
Max Profit (per contract): $120.85
Max Loss (per contract): -$70.00
Breakeven(s): $30.70
Risk / Reward Ratio: 1.726

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.

TSCO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TSCO. 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%	-$70.00
$7.00	-77.9%	-$70.00
$13.99	-55.8%	-$70.00
$20.97	-33.6%	-$70.00
$27.96	-11.5%	-$70.00
$34.95	+10.6%	+$30.00
$41.94	+32.7%	+$30.00
$48.93	+54.8%	+$30.00
$55.91	+76.9%	+$30.00
$62.90	+99.0%	+$30.00

When traders use butterfly on TSCO

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

TSCO thesis for this butterfly

The market-implied 1-standard-deviation range for TSCO extends from approximately $26.90 on the downside to $36.32 on the upside. A TSCO long call butterfly is a pinning play: it pays maximum at the middle strike if TSCO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TSCO IV rank near 97.93% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on TSCO at 51.95%. As a Consumer Cyclical name, TSCO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSCO-specific events.

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

Frequently asked questions

What is a butterfly on TSCO?: A butterfly on TSCO is the butterfly strategy applied to TSCO (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 TSCO stock trading near $31.61, the strikes shown on this page are snapped to the nearest listed TSCO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TSCO 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 TSCO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 51.95%), the computed maximum profit is $120.85 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TSCO butterfly?: The breakeven for the TSCO butterfly priced on this page is roughly $30.70 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 TSCO market-implied 1-standard-deviation expected move is approximately 14.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TSCO?: Butterflies on TSCO are pinning bets - traders use them when they expect TSCO 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 TSCO implied volatility affect this butterfly?: TSCO ATM IV is at 51.95% with IV rank near 97.93%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.