How are VSAT 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 VSAT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 90.10%), the computed maximum profit is $419.28 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VSAT butterfly?

The breakeven for the VSAT butterfly priced on this page is roughly $65.55 and $74.45 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 VSAT market-implied 1-standard-deviation expected move is approximately 25.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VSAT implied volatility affect this butterfly?

VSAT ATM IV is at 90.10% with IV rank near 49.51%, 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.

VSAT Butterfly Strategy

VSAT (Viasat, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.

Viasat, Inc. provides broadband and communications products and services worldwide. The company's Satellite Services segment offers satellite-based fixed broadband services, including broadband internet access and voice over internet protocol services to consumers and businesses; in-flight entertainment and aviation software services to commercial airlines; community internet services; mobile broadband services, including satellite-based internet services to energy offshore vessels, cruise ships, consumer ferries, and yachts; and energy services, which include ultra-secure solutions IP connectivity, bandwidth-optimized over-the-top applications, industrial internet-of-things big data enablement, and industry-leading machine learning analytics. Its Commercial Networks segment offers fixed broadband satellite communication systems comprising satellite network infrastructure and ground terminals; mobile broadband satellite communication systems; antenna systems for terrestrial and satellite applications, such as earth imaging, remote sensing, mobile satellite communication, Ka-band earth stations, and other multi-band antennas; design and technology services comprising analysis, design, and development of satellites and ground systems; application specific integrated circuit and monolithic microwave integrated circuit chips; and network function virtualization, as well as space system design and development products and services include architectures for GEO, MEO, LEO satellites, and other satellite platforms. The company was incorporated in 1986 and is headquartered in Carlsbad, California.

VSAT (Viasat, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $9.59B, a beta of 1.67 versus the broader market, a 52-week range of 8.61-74.25, average daily share volume of 1.6M, a public-listing history dating back to 1996, approximately 8K full-time employees. These structural characteristics shape how VSAT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.67 indicates VSAT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on VSAT?

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 VSAT snapshot

As of May 15, 2026, spot at $70.09, ATM IV 90.10%, IV rank 49.51%, expected move 25.83%. The butterfly on VSAT 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 VSAT specifically: VSAT IV at 90.10% 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 25.83% (roughly $18.10 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 VSAT expiries trade a higher absolute premium for lower per-day decay. Position sizing on VSAT should anchor to the underlying notional of $70.09 per share and to the trader's directional view on VSAT stock.

VSAT butterfly setup

The VSAT 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 VSAT near $70.09, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VSAT 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 VSAT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$65.00	$10.35
Sell 2	Call	$70.00	$7.80
Buy 1	Call	$75.00	$5.80

VSAT butterfly risk and reward

Net Premium / Debit: -$55.00
Max Profit (per contract): $419.28
Max Loss (per contract): -$55.00
Breakeven(s): $65.55, $74.45
Risk / Reward Ratio: 7.623

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.

VSAT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on VSAT. 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%	-$55.00
$15.51	-77.9%	-$55.00
$31.00	-55.8%	-$55.00
$46.50	-33.7%	-$55.00
$61.99	-11.5%	-$55.00
$77.49	+10.6%	-$55.00
$92.99	+32.7%	-$55.00
$108.48	+54.8%	-$55.00
$123.98	+76.9%	-$55.00
$139.48	+99.0%	-$55.00

When traders use butterfly on VSAT

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

VSAT thesis for this butterfly

The market-implied 1-standard-deviation range for VSAT extends from approximately $51.99 on the downside to $88.19 on the upside. A VSAT long call butterfly is a pinning play: it pays maximum at the middle strike if VSAT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VSAT IV rank near 49.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on VSAT should anchor more to the directional view and the expected-move geometry. As a Technology name, VSAT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VSAT-specific events.

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

Frequently asked questions

What is a butterfly on VSAT?: A butterfly on VSAT is the butterfly strategy applied to VSAT (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 VSAT stock trading near $70.09, the strikes shown on this page are snapped to the nearest listed VSAT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VSAT 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 VSAT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 90.10%), the computed maximum profit is $419.28 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VSAT butterfly?: The breakeven for the VSAT butterfly priced on this page is roughly $65.55 and $74.45 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 VSAT market-implied 1-standard-deviation expected move is approximately 25.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on VSAT?: Butterflies on VSAT are pinning bets - traders use them when they expect VSAT 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 VSAT implied volatility affect this butterfly?: VSAT ATM IV is at 90.10% with IV rank near 49.51%, 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.