How are VIAV 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 VIAV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 85.90%), the computed maximum profit is $240.96 per contract and the computed maximum loss is -$235.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VIAV butterfly?

The breakeven for the VIAV butterfly priced on this page is roughly $52.65 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 VIAV market-implied 1-standard-deviation expected move is approximately 24.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VIAV implied volatility affect this butterfly?

VIAV ATM IV is at 85.90% with IV rank near 58.47%, 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.

VIAV Butterfly Strategy

VIAV (Viavi Solutions Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.

Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, original equipment manufacturers, government, and avionics customers worldwide. The company operates through three segments: Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP) segments. The NE segment offers testing solutions that access the network to perform build-out and maintenance tasks. This segment provides solutions that include instruments, software, and services to design, build, activate, certify, troubleshoot, and optimize networks; and instrumentation for communication and safety. It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects, including project management, installation, and implementation, as well as product and technology training, and consulting services. The SE segment provides embedded systems and enterprise performance management solutions for communication service providers, enterprises, and cloud operators with visibility into network, service, and application data.

VIAV (Viavi Solutions Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $12.54B, a beta of 1.23 versus the broader market, a 52-week range of 8.87-60.43, average daily share volume of 6.4M, a public-listing history dating back to 1993, approximately 4K full-time employees. These structural characteristics shape how VIAV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.23 places VIAV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on VIAV?

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 VIAV snapshot

As of May 15, 2026, spot at $51.53, ATM IV 85.90%, IV rank 58.47%, expected move 24.63%. The butterfly on VIAV 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 VIAV specifically: VIAV IV at 85.90% 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 24.63% (roughly $12.69 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 VIAV expiries trade a higher absolute premium for lower per-day decay. Position sizing on VIAV should anchor to the underlying notional of $51.53 per share and to the trader's directional view on VIAV stock.

VIAV butterfly setup

The VIAV 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 VIAV near $51.53, the first option leg uses a $49.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VIAV 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 VIAV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$49.00	$6.75
Sell 2	Call	$50.00	$6.20
Buy 1	Call	$55.00	$4.00

VIAV butterfly risk and reward

Net Premium / Debit: +$165.00
Max Profit (per contract): $240.96
Max Loss (per contract): -$235.00
Breakeven(s): $52.65
Risk / Reward Ratio: 1.025

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.

VIAV butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on VIAV. 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%	+$165.00
$11.40	-77.9%	+$165.00
$22.79	-55.8%	+$165.00
$34.19	-33.7%	+$165.00
$45.58	-11.5%	+$165.00
$56.97	+10.6%	-$235.00
$68.36	+32.7%	-$235.00
$79.76	+54.8%	-$235.00
$91.15	+76.9%	-$235.00
$102.54	+99.0%	-$235.00

When traders use butterfly on VIAV

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

VIAV thesis for this butterfly

The market-implied 1-standard-deviation range for VIAV extends from approximately $38.84 on the downside to $64.22 on the upside. A VIAV long call butterfly is a pinning play: it pays maximum at the middle strike if VIAV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VIAV IV rank near 58.47% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on VIAV should anchor more to the directional view and the expected-move geometry. As a Technology name, VIAV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VIAV-specific events.

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

Frequently asked questions

What is a butterfly on VIAV?: A butterfly on VIAV is the butterfly strategy applied to VIAV (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 VIAV stock trading near $51.53, the strikes shown on this page are snapped to the nearest listed VIAV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VIAV 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 VIAV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 85.90%), the computed maximum profit is $240.96 per contract and the computed maximum loss is -$235.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VIAV butterfly?: The breakeven for the VIAV butterfly priced on this page is roughly $52.65 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 VIAV market-implied 1-standard-deviation expected move is approximately 24.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on VIAV?: Butterflies on VIAV are pinning bets - traders use them when they expect VIAV 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 VIAV implied volatility affect this butterfly?: VIAV ATM IV is at 85.90% with IV rank near 58.47%, 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.