How are URBN 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 URBN butterfly priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.20%), the computed maximum profit is $307.48 per contract and the computed maximum loss is -$87.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a URBN butterfly?

The breakeven for the URBN butterfly priced on this page is roughly $73.88 at expiration, derived from the September 30, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The URBN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current URBN implied volatility affect this butterfly?

URBN ATM IV is at 40.20% with IV rank near 15.46%, 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.

URBN Butterfly Strategy

URBN (Urban Outfitters, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NASDAQ.

Urban Outfitters, Inc. engages in the operation of a general consumer product retail and wholesale business selling to customers through various channels including retail locations, websites, catalogs, and mobile applications. It operates through the following segments: Retail, Wholesale and Subscription. The Retail segment contains the Anthropologie, BHLDN, Free People, Terrain, and Urban Outfitters brands and its Food and Beverage division. The Wholesale segment designs, develops, and markets apparel, intimates, active wear, and home goods under the Free People, Anthropologie, and Urban Outfitters brands. The Subscription segment consists of the Nuuly brand, which is a monthly women’s apparel subscription rental service. The company was founded by Richard A.

URBN (Urban Outfitters, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $6.54B, a trailing P/E of 11.49, a beta of 1.26 versus the broader market, a 52-week range of 59.54-85.43, average daily share volume of 1.2M, a public-listing history dating back to 1993, approximately 31K full-time employees. These structural characteristics shape how URBN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.26 places URBN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.49 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a butterfly on URBN?

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.

URBN snapshot

As of September 30, 2026, spot at $76.66, ATM IV 40.20%, IV rank 15.46%, expected move 11.53%. The butterfly on URBN below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 30-day expiry.

Why this butterfly structure on URBN specifically: URBN IV at 40.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a URBN butterfly, with a market-implied 1-standard-deviation move of approximately 11.53% (roughly $8.84 on the underlying). The 30-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated URBN expiries trade a higher absolute premium for lower per-day decay. Position sizing on URBN should anchor to the underlying notional of $76.66 per share and to the trader's directional view on URBN stock.

URBN butterfly setup

The URBN butterfly below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With URBN at $76.66 on that close, the first option leg uses a $73.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URBN chain at a 30-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 URBN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$73.00	$5.30
Sell 2	Call	$77.00	$3.20
Buy 1	Call	$80.00	$1.98

URBN butterfly risk and reward

Net Premium / Debit: -$87.50
Max Profit (per contract): $307.48
Max Loss (per contract): -$87.50
Breakeven(s): $73.88
Risk / Reward Ratio: 3.514

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.

URBN butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on URBN. 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%	-$87.50
$16.96	-77.9%	-$87.50
$33.91	-55.8%	-$87.50
$50.86	-33.7%	-$87.50
$67.81	-11.6%	-$87.50
$84.75	+10.6%	+$12.50
$101.70	+32.7%	+$12.50
$118.65	+54.8%	+$12.50
$135.60	+76.9%	+$12.50
$152.55	+99.0%	+$12.50

When traders use butterfly on URBN

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

URBN thesis for this butterfly

The market-implied 1-standard-deviation range for URBN extends from approximately $67.82 on the downside to $85.50 on the upside. A URBN long call butterfly is a pinning play: it pays maximum at the middle strike if URBN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current URBN IV rank near 15.46% 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 URBN at 40.20%. As a Consumer Cyclical name, URBN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URBN-specific events.

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

Frequently asked questions

What is a butterfly on URBN?: A butterfly on URBN is the butterfly strategy applied to URBN (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 URBN stock at $76.66 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed URBN chain strike and the premiums come straight from that session's bid/ask midpoint.
How are URBN 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 URBN butterfly priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.20%), the computed maximum profit is $307.48 per contract and the computed maximum loss is -$87.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a URBN butterfly?: The breakeven for the URBN butterfly priced on this page is roughly $73.88 at expiration, derived from the September 30, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The URBN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on URBN?: Butterflies on URBN are pinning bets - traders use them when they expect URBN 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 URBN implied volatility affect this butterfly?: URBN ATM IV is at 40.20% with IV rank near 15.46%, 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.