How are UFPT 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 UFPT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.70%), the computed maximum profit is $1,142.01 per contract and the computed maximum loss is -$805.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UFPT butterfly?

The breakeven for the UFPT butterfly priced on this page is roughly $208.05 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 UFPT market-implied 1-standard-deviation expected move is approximately 11.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UFPT implied volatility affect this butterfly?

UFPT ATM IV is at 40.70% with IV rank near 39.77%, 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.

UFPT Butterfly Strategy

UFPT (UFP Technologies, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

UFP Technologies, Inc. designs and custom manufactures components, subassemblies, products, and packaging utilizing specialized foams, films, and plastics primarily for the medical market. Its single-use and single-patient devices and components are used in a range of medical devices, disposable wound care products, infection prevention, minimally invasive surgery, wearables, orthopedic soft goods, and orthopedic implant packaging. The company also provides engineered products and components to customers in the automotive, aerospace and defense, consumer, electronics, and industrial markets, which are applied in military uniform and gear components, automotive interior trim, athletic padding, environmentally protective packaging, air filtration, abrasive nail files, and protective cases and inserts. It markets and sells its products in the United States principally through a direct sales force, as well as independent manufacturer representatives. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.

UFPT (UFP Technologies, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.70B, a trailing P/E of 24.67, a beta of 1.08 versus the broader market, a 52-week range of 173.86-274.93, average daily share volume of 224K, a public-listing history dating back to 1993, approximately 4K full-time employees. These structural characteristics shape how UFPT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.08 places UFPT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on UFPT?

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 UFPT snapshot

As of May 15, 2026, spot at $215.12, ATM IV 40.70%, IV rank 39.77%, expected move 11.67%. The butterfly on UFPT 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 34-day expiry.

Why this butterfly structure on UFPT specifically: UFPT IV at 40.70% 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 11.67% (roughly $25.10 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UFPT expiries trade a higher absolute premium for lower per-day decay. Position sizing on UFPT should anchor to the underlying notional of $215.12 per share and to the trader's directional view on UFPT stock.

UFPT butterfly setup

The UFPT 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 UFPT near $215.12, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UFPT chain at a 34-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 UFPT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$200.00	$21.00
Sell 2	Call	$220.00	$9.00
Buy 1	Call	$230.00	$5.05

UFPT butterfly risk and reward

Net Premium / Debit: -$805.00
Max Profit (per contract): $1,142.01
Max Loss (per contract): -$805.00
Breakeven(s): $208.05
Risk / Reward Ratio: 1.419

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.

UFPT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on UFPT. 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%	-$805.00
$47.57	-77.9%	-$805.00
$95.14	-55.8%	-$805.00
$142.70	-33.7%	-$805.00
$190.26	-11.6%	-$805.00
$237.83	+10.6%	+$195.00
$285.39	+32.7%	+$195.00
$332.95	+54.8%	+$195.00
$380.51	+76.9%	+$195.00
$428.08	+99.0%	+$195.00

When traders use butterfly on UFPT

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

UFPT thesis for this butterfly

The market-implied 1-standard-deviation range for UFPT extends from approximately $190.02 on the downside to $240.22 on the upside. A UFPT long call butterfly is a pinning play: it pays maximum at the middle strike if UFPT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current UFPT IV rank near 39.77% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on UFPT should anchor more to the directional view and the expected-move geometry. As a Healthcare name, UFPT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UFPT-specific events.

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

Frequently asked questions

What is a butterfly on UFPT?: A butterfly on UFPT is the butterfly strategy applied to UFPT (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 UFPT stock trading near $215.12, the strikes shown on this page are snapped to the nearest listed UFPT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UFPT 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 UFPT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.70%), the computed maximum profit is $1,142.01 per contract and the computed maximum loss is -$805.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UFPT butterfly?: The breakeven for the UFPT butterfly priced on this page is roughly $208.05 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 UFPT market-implied 1-standard-deviation expected move is approximately 11.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on UFPT?: Butterflies on UFPT are pinning bets - traders use them when they expect UFPT 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 UFPT implied volatility affect this butterfly?: UFPT ATM IV is at 40.70% with IV rank near 39.77%, 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.