How are UNM 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 UNM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.80%), the computed maximum profit is $259.45 per contract and the computed maximum loss is -$230.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UNM butterfly?

The breakeven for the UNM butterfly priced on this page is roughly $87.30 and $92.70 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 UNM market-implied 1-standard-deviation expected move is approximately 6.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UNM implied volatility affect this butterfly?

UNM ATM IV is at 22.80% with IV rank near 25.26%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

UNM Butterfly Strategy

UNM (Unum Group), in the Financial Services sector, (Insurance - Life industry), listed on NYSE.

Unum Group, along with its various subsidiaries, specializes in delivering financial protection benefits, primarily operating across the United States, the United Kingdom, and Poland. The company's operations are organized into distinct segments: Unum US, Unum International, Colonial Life, and the Closed Block. Its extensive product portfolio encompasses group coverage, including long-term and short-term disability, life insurance, and accidental death and dismemberment. Additionally, Unum provides a range of supplemental and voluntary offerings like individual disability, various voluntary benefits, and dental and vision plans. Further offerings include policies addressing accidents, sickness, general disability, life coverage, cancer, and critical illness. Beyond these, Unum's services extend to group pension plans, individual life insurance, corporate-owned life insurance (COLI), and the management of reinsurance pools.

UNM (Unum Group) trades in the Financial Services sector, specifically Insurance - Life, with a market capitalization of approximately $14.40B, a trailing P/E of 18.92, a beta of 0.25 versus the broader market, a 52-week range of 68.28-93.22, average daily share volume of 1.4M, a public-listing history dating back to 1986, approximately 11K full-time employees. These structural characteristics shape how UNM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.25 indicates UNM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. UNM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on UNM?

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 UNM snapshot

As of June 30, 2026, spot at $89.65, ATM IV 22.80%, IV rank 25.26%, expected move 6.54%. The butterfly on UNM 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 UNM specifically: UNM IV at 22.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a UNM butterfly, with a market-implied 1-standard-deviation move of approximately 6.54% (roughly $5.86 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 UNM expiries trade a higher absolute premium for lower per-day decay. Position sizing on UNM should anchor to the underlying notional of $89.65 per share and to the trader's directional view on UNM stock.

UNM butterfly setup

The UNM 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 UNM near $89.65, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UNM 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 UNM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$85.00	$5.45
Sell 2	Call	$90.00	$1.78
Buy 1	Call	$95.00	$0.40

UNM butterfly risk and reward

Net Premium / Debit: -$230.00
Max Profit (per contract): $259.45
Max Loss (per contract): -$230.00
Breakeven(s): $87.30, $92.70
Risk / Reward Ratio: 1.128

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.

UNM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on UNM. 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%	-$230.00
$19.83	-77.9%	-$230.00
$39.65	-55.8%	-$230.00
$59.47	-33.7%	-$230.00
$79.29	-11.6%	-$230.00
$99.12	+10.6%	-$230.00
$118.94	+32.7%	-$230.00
$138.76	+54.8%	-$230.00
$158.58	+76.9%	-$230.00
$178.40	+99.0%	-$230.00

When traders use butterfly on UNM

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

UNM thesis for this butterfly

The market-implied 1-standard-deviation range for UNM extends from approximately $83.79 on the downside to $95.51 on the upside. A UNM long call butterfly is a pinning play: it pays maximum at the middle strike if UNM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current UNM IV rank near 25.26% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on UNM at 22.80%. As a Financial Services name, UNM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UNM-specific events.

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

Frequently asked questions

What is a butterfly on UNM?: A butterfly on UNM is the butterfly strategy applied to UNM (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 UNM stock trading near $89.65, the strikes shown on this page are snapped to the nearest listed UNM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UNM 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 UNM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.80%), the computed maximum profit is $259.45 per contract and the computed maximum loss is -$230.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UNM butterfly?: The breakeven for the UNM butterfly priced on this page is roughly $87.30 and $92.70 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 UNM market-implied 1-standard-deviation expected move is approximately 6.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on UNM?: Butterflies on UNM are pinning bets - traders use them when they expect UNM 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 UNM implied volatility affect this butterfly?: UNM ATM IV is at 22.80% with IV rank near 25.26%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.