How are TYL 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 TYL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 49.90%), the computed maximum profit is $1,161.75 per contract and the computed maximum loss is -$700.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TYL butterfly?

The breakeven for the TYL butterfly priced on this page is roughly $303.00 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 TYL market-implied 1-standard-deviation expected move is approximately 14.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TYL implied volatility affect this butterfly?

TYL ATM IV is at 49.90% with IV rank near 72.35%, 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.

TYL Butterfly Strategy

TYL (Tyler Technologies, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.

Tyler Technologies, Inc. specializes in delivering comprehensive information management solutions and services tailored for the public sector. Its operations are organized into three primary divisions: Enterprise Software, Appraisal and Tax, and NIC. The company's extensive product portfolio encompasses financial management tools, such as modular fund accounting systems designed for government bodies and non-profit organizations, as well as utility billing platforms for managing both metered and unmetered services. Additionally, Tyler offers solutions that automate a wide array of municipal and county operations, ranging from municipal court and parking ticket administration to animal and business licensing, permits and inspections, code enforcement, citizen complaint resolution, ambulance billing, fleet maintenance, and cemetery records management. Educational institutions, particularly K-12 schools, benefit from their specialized student information and transportation management systems. Furthermore, the company delivers a comprehensive suite of judicial technologies, including systems for court case management, integrated court and law enforcement functions, prosecutor support, and supervision.

TYL (Tyler Technologies, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $12.41B, a trailing P/E of 39.84, a beta of 0.81 versus the broader market, a 52-week range of 270.71-621.34, average daily share volume of 726K, a public-listing history dating back to 1980, approximately 7K full-time employees. These structural characteristics shape how TYL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.81 places TYL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 39.84 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 TYL?

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 TYL snapshot

As of June 30, 2026, spot at $293.03, ATM IV 49.90%, IV rank 72.35%, expected move 14.31%. The butterfly on TYL 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 TYL specifically: TYL IV at 49.90% is rich versus its 1-year range, which makes a premium-buying TYL butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 14.31% (roughly $41.92 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 TYL expiries trade a higher absolute premium for lower per-day decay. Position sizing on TYL should anchor to the underlying notional of $293.03 per share and to the trader's directional view on TYL stock.

TYL butterfly setup

The TYL 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 TYL near $293.03, the first option leg uses a $280.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TYL 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 TYL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$280.00	$19.90
Sell 2	Call	$290.00	$14.90
Buy 1	Call	$310.00	$6.90

TYL butterfly risk and reward

Net Premium / Debit: +$300.00
Max Profit (per contract): $1,161.75
Max Loss (per contract): -$700.00
Breakeven(s): $303.00
Risk / Reward Ratio: 1.660

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.

TYL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TYL. 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%	+$300.00
$64.80	-77.9%	+$300.00
$129.59	-55.8%	+$300.00
$194.38	-33.7%	+$300.00
$259.17	-11.6%	+$300.00
$323.96	+10.6%	-$700.00
$388.75	+32.7%	-$700.00
$453.54	+54.8%	-$700.00
$518.33	+76.9%	-$700.00
$583.12	+99.0%	-$700.00

When traders use butterfly on TYL

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

TYL thesis for this butterfly

The market-implied 1-standard-deviation range for TYL extends from approximately $251.11 on the downside to $334.95 on the upside. A TYL long call butterfly is a pinning play: it pays maximum at the middle strike if TYL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TYL IV rank near 72.35% 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 TYL at 49.90%. As a Technology name, TYL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TYL-specific events.

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

Frequently asked questions

What is a butterfly on TYL?: A butterfly on TYL is the butterfly strategy applied to TYL (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 TYL stock trading near $293.03, the strikes shown on this page are snapped to the nearest listed TYL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TYL 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 TYL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 49.90%), the computed maximum profit is $1,161.75 per contract and the computed maximum loss is -$700.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TYL butterfly?: The breakeven for the TYL butterfly priced on this page is roughly $303.00 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 TYL market-implied 1-standard-deviation expected move is approximately 14.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TYL?: Butterflies on TYL are pinning bets - traders use them when they expect TYL 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 TYL implied volatility affect this butterfly?: TYL ATM IV is at 49.90% with IV rank near 72.35%, 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.