How are UNFI 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 UNFI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 59.50%), the computed maximum profit is $225.00 per contract and the computed maximum loss is -$275.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UNFI butterfly?

The breakeven for the UNFI butterfly priced on this page is roughly $52.25 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 UNFI market-implied 1-standard-deviation expected move is approximately 17.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UNFI implied volatility affect this butterfly?

UNFI ATM IV is at 59.50% with IV rank near 34.94%, 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.

UNFI Butterfly Strategy

UNFI (United Natural Foods, Inc.), in the Consumer Defensive sector, (Food Distribution industry), listed on NYSE.

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates in two segments, Wholesale and Retail. The company offers grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements and sports nutrition, bulk and foodservice products, and personal care items. It also provides Woodstock brand imports, roasts, packages, and distributes nuts, dried fruits, seeds, trail mixes, granola, natural and organic snack items, and confections. In addition, the company is involved in importing, roasting, packaging, and distributing nuts, dried fruits, seeds, trail mixes, granola, natural and organic snack items, and confections. Further, it offers Blue Marble Brands products through wholesale segment, third-party distributors, and directly to retailers; and Field Day brand products primarily to customers through its independent channel.

UNFI (United Natural Foods, Inc.) trades in the Consumer Defensive sector, specifically Food Distribution, with a market capitalization of approximately $3.18B, a beta of 0.82 versus the broader market, a 52-week range of 20.78-53.18, average daily share volume of 721K, a public-listing history dating back to 1996, approximately 28K full-time employees. These structural characteristics shape how UNFI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places UNFI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on UNFI?

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 UNFI snapshot

As of May 15, 2026, spot at $50.93, ATM IV 59.50%, IV rank 34.94%, expected move 17.06%. The butterfly on UNFI 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 98-day expiry.

Why this butterfly structure on UNFI specifically: UNFI IV at 59.50% 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 17.06% (roughly $8.69 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UNFI expiries trade a higher absolute premium for lower per-day decay. Position sizing on UNFI should anchor to the underlying notional of $50.93 per share and to the trader's directional view on UNFI stock.

UNFI butterfly setup

The UNFI 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 UNFI near $50.93, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UNFI chain at a 98-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 UNFI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$50.00	$5.75
Sell 2	Call	$50.00	$5.75
Buy 1	Call	$55.00	$3.50

UNFI butterfly risk and reward

Net Premium / Debit: +$225.00
Max Profit (per contract): $225.00
Max Loss (per contract): -$275.00
Breakeven(s): $52.25
Risk / Reward Ratio: 0.818

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.

UNFI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on UNFI. 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%	+$225.00
$11.27	-77.9%	+$225.00
$22.53	-55.8%	+$225.00
$33.79	-33.7%	+$225.00
$45.05	-11.5%	+$225.00
$56.31	+10.6%	-$275.00
$67.57	+32.7%	-$275.00
$78.83	+54.8%	-$275.00
$90.09	+76.9%	-$275.00
$101.35	+99.0%	-$275.00

When traders use butterfly on UNFI

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

UNFI thesis for this butterfly

The market-implied 1-standard-deviation range for UNFI extends from approximately $42.24 on the downside to $59.62 on the upside. A UNFI long call butterfly is a pinning play: it pays maximum at the middle strike if UNFI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current UNFI IV rank near 34.94% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on UNFI should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, UNFI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UNFI-specific events.

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

Frequently asked questions

What is a butterfly on UNFI?: A butterfly on UNFI is the butterfly strategy applied to UNFI (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 UNFI stock trading near $50.93, the strikes shown on this page are snapped to the nearest listed UNFI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UNFI 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 UNFI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 59.50%), the computed maximum profit is $225.00 per contract and the computed maximum loss is -$275.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UNFI butterfly?: The breakeven for the UNFI butterfly priced on this page is roughly $52.25 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 UNFI market-implied 1-standard-deviation expected move is approximately 17.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on UNFI?: Butterflies on UNFI are pinning bets - traders use them when they expect UNFI 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 UNFI implied volatility affect this butterfly?: UNFI ATM IV is at 59.50% with IV rank near 34.94%, 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.