How are VRSK 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 VRSK butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.40%), the computed maximum profit is $524.47 per contract and the computed maximum loss is -$445.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VRSK butterfly?

The breakeven for the VRSK butterfly priced on this page is roughly $185.55 at expiration, derived from the August 14, 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 VRSK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VRSK implied volatility affect this butterfly?

VRSK ATM IV is at 32.40% with IV rank near 35.60%, 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.

VRSK Butterfly Strategy

VRSK (Verisk Analytics, Inc.), in the Technology sector, (Software - Services industry), listed on NASDAQ.

Verisk Analytics, Inc. is a global leader in providing advanced data analytics. It offers predictive insights and decision-making tools to a diverse clientele across numerous sectors. These include risk assessment (such as rating, underwriting, and claims), catastrophe and weather risk management, global risk analytics, natural resource intelligence, economic forecasting, commercial banking, finance, and many other specialized areas. The company's operations are organized into three primary divisions: Insurance, Energy and Specialized Markets, and Financial Services. Within the Insurance segment, Verisk assists property and casualty insurers by focusing on anticipating potential losses, accurately selecting and pricing risks, and ensuring regulatory compliance. This division develops sophisticated machine learning and artificial intelligence models to predict various scenarios and generate both standard and tailored analytics.

VRSK (Verisk Analytics, Inc.) trades in the Technology sector, specifically Software - Services, with a market capitalization of approximately $23.48B, a trailing P/E of 26.64, a beta of 0.66 versus the broader market, a 52-week range of 155.94-276.19, average daily share volume of 2.2M, a public-listing history dating back to 2009, approximately 8K full-time employees. These structural characteristics shape how VRSK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.66 indicates VRSK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. VRSK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on VRSK?

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.

VRSK snapshot

As of August 14, 2026, spot at $182.44, ATM IV 32.40%, IV rank 35.60%, expected move 9.29%. The butterfly on VRSK below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this butterfly structure on VRSK specifically: VRSK IV at 32.40% 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 9.29% (roughly $16.95 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VRSK expiries trade a higher absolute premium for lower per-day decay. Position sizing on VRSK should anchor to the underlying notional of $182.44 per share and to the trader's directional view on VRSK stock.

VRSK butterfly setup

The VRSK butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With VRSK at $182.44 on that close, the first option leg uses a $175.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VRSK chain at a 35-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 VRSK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$175.00	$12.05
Sell 2	Call	$180.00	$8.85
Buy 1	Call	$190.00	$5.10

VRSK butterfly risk and reward

Net Premium / Debit: +$55.00
Max Profit (per contract): $524.47
Max Loss (per contract): -$445.00
Breakeven(s): $185.55
Risk / Reward Ratio: 1.179

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.

VRSK butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on VRSK. 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%	+$55.00
$40.35	-77.9%	+$55.00
$80.68	-55.8%	+$55.00
$121.02	-33.7%	+$55.00
$161.36	-11.6%	+$55.00
$201.70	+10.6%	-$445.00
$242.03	+32.7%	-$445.00
$282.37	+54.8%	-$445.00
$322.71	+76.9%	-$445.00
$363.05	+99.0%	-$445.00

When traders use butterfly on VRSK

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

VRSK thesis for this butterfly

The market-implied 1-standard-deviation range for VRSK extends from approximately $165.49 on the downside to $199.39 on the upside. A VRSK long call butterfly is a pinning play: it pays maximum at the middle strike if VRSK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VRSK IV rank near 35.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on VRSK should anchor more to the directional view and the expected-move geometry. As a Technology name, VRSK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VRSK-specific events.

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

Frequently asked questions

What is a butterfly on VRSK?: A butterfly on VRSK is the butterfly strategy applied to VRSK (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 VRSK stock at $182.44 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed VRSK chain strike and the premiums come straight from that session's bid/ask midpoint.
How are VRSK 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 VRSK butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.40%), the computed maximum profit is $524.47 per contract and the computed maximum loss is -$445.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VRSK butterfly?: The breakeven for the VRSK butterfly priced on this page is roughly $185.55 at expiration, derived from the August 14, 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 VRSK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on VRSK?: Butterflies on VRSK are pinning bets - traders use them when they expect VRSK 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 VRSK implied volatility affect this butterfly?: VRSK ATM IV is at 32.40% with IV rank near 35.60%, 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.