How are VMRK 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 VMRK butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is $188.53 per contract and the computed maximum loss is -$292.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VMRK butterfly?

The breakeven for the VMRK butterfly priced on this page is roughly $60.43 and $64.58 at expiration, derived from the September 29, 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 VMRK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VMRK implied volatility affect this butterfly?

Current VMRK ATM IV is 24.10%; IV rank context is unavailable in the current snapshot.

VMRK Butterfly Strategy

VMRK (Vivmark Residential), in the Real Estate sector, (REIT - Residential industry), listed on NYSE.

Vivmark Residential is a real estate investment trust (REIT) and S&P 500 company formed through the August 2026 merger of equals between Equity Residential and AvalonBay Communities. The company focuses on the ownership, development, and management of high-quality apartment communities in premier U.S. markets, including major coastal cities and high-growth metro areas. Vivmark's portfolio consists of over 184,000 apartment homes with a substantial development pipeline. [25, 28, 40]

VMRK (Vivmark Residential) trades in the Real Estate sector, specifically REIT - Residential, with a market capitalization of approximately $22.78B, a trailing P/E of 26.54, a beta of 0.75 versus the broader market, a 52-week range of 57.57-71.5, average daily share volume of 4.3M, a public-listing history dating back to 1993, approximately 3K full-time employees. These structural characteristics shape how VMRK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.75 places VMRK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VMRK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on VMRK?

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.

VMRK snapshot

As of September 29, 2026, spot at $61.38, ATM IV 24.10%, expected move 6.91%. The butterfly on VMRK below is built from the September 29, 2026 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 VMRK specifically: IV rank is unavailable in the current snapshot, so regime-based timing for VMRK is inferred from ATM IV at 24.10% alone, with a market-implied 1-standard-deviation move of approximately 6.91% (roughly $4.24 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 VMRK expiries trade a higher absolute premium for lower per-day decay. Position sizing on VMRK should anchor to the underlying notional of $61.38 per share and to the trader's directional view on VMRK stock.

VMRK butterfly setup

The VMRK butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With VMRK at $61.38 on that close, the first option leg uses a $57.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VMRK 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 VMRK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$57.50	$3.80
Sell 2	Call	$62.50	$0.65
Buy 1	Call	$65.00	$0.43

VMRK butterfly risk and reward

Net Premium / Debit: -$292.50
Max Profit (per contract): $188.53
Max Loss (per contract): -$292.50
Breakeven(s): $60.43, $64.58
Risk / Reward Ratio: 0.645

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.

VMRK butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on VMRK. 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%	-$292.50
$13.58	-77.9%	-$292.50
$27.15	-55.8%	-$292.50
$40.72	-33.7%	-$292.50
$54.29	-11.5%	-$292.50
$67.86	+10.6%	-$42.50
$81.43	+32.7%	-$42.50
$95.00	+54.8%	-$42.50
$108.57	+76.9%	-$42.50
$122.14	+99.0%	-$42.50

When traders use butterfly on VMRK

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

VMRK thesis for this butterfly

The market-implied 1-standard-deviation range for VMRK extends from approximately $57.14 on the downside to $65.62 on the upside. A VMRK long call butterfly is a pinning play: it pays maximum at the middle strike if VMRK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Real Estate name, VMRK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VMRK-specific events.

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

Frequently asked questions

What is a butterfly on VMRK?: A butterfly on VMRK is the butterfly strategy applied to VMRK (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 VMRK stock at $61.38 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed VMRK chain strike and the premiums come straight from that session's bid/ask midpoint.
How are VMRK 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 VMRK butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is $188.53 per contract and the computed maximum loss is -$292.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VMRK butterfly?: The breakeven for the VMRK butterfly priced on this page is roughly $60.43 and $64.58 at expiration, derived from the September 29, 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 VMRK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on VMRK?: Butterflies on VMRK are pinning bets - traders use them when they expect VMRK 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 VMRK implied volatility affect this butterfly?: Current VMRK ATM IV is 24.10%; IV rank context is unavailable in the current snapshot.