How are VZ 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 VZ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.47%), the computed maximum profit is $139.89 per contract and the computed maximum loss is -$137.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VZ butterfly?

The breakeven for the VZ butterfly priced on this page is roughly $46.38 and $49.63 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 VZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VZ implied volatility affect this butterfly?

VZ ATM IV is at 20.47% with IV rank near 34.41%, 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.

VZ Butterfly Strategy

VZ (Verizon Communications Inc.), in the Communication Services sector, (Telecommunications Services industry), listed on NYSE.

Verizon Communications Inc. operates as a prominent global provider of diverse communication, technology, information, and entertainment solutions, catering to individuals, enterprises, and government entities worldwide through its various divisions. Its Consumer segment focuses on individual customers, supplying a broad spectrum of mobile service options, including both subscription-based (postpaid) and pay-as-you-go (prepaid) plans. This segment also facilitates internet access for portable devices such as laptop computers and tablets, and offers a variety of wireless hardware, ranging from smartphones and traditional mobile handsets to advanced wireless-enabled gadgets like tablets and smartwatches. Additionally, it delivers essential residential fixed connectivity services, which encompass internet, television, and voice communication. Verizon also extends its network capabilities by providing access to mobile virtual network operators. As of December 31, 2021, this segment reported approximately 115 million wireless retail connections, 7 million wireline broadband connections, and 4 million Fios video connections.

VZ (Verizon Communications Inc.) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $196.17B, a trailing P/E of 12.11, a beta of 0.23 versus the broader market, a 52-week range of 38.39-51.68, average daily share volume of 27.0M, a public-listing history dating back to 1983, approximately 90K full-time employees. These structural characteristics shape how VZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.23 indicates VZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. VZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on VZ?

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.

VZ snapshot

As of August 14, 2026, spot at $48.50, ATM IV 20.47%, IV rank 34.41%, expected move 5.87%. The butterfly on VZ 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 28-day expiry.

Why this butterfly structure on VZ specifically: VZ IV at 20.47% 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 5.87% (roughly $2.85 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on VZ should anchor to the underlying notional of $48.50 per share and to the trader's directional view on VZ stock.

VZ butterfly setup

The VZ 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 VZ at $48.50 on that close, the first option leg uses a $46.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VZ chain at a 28-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 VZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$46.00	$2.86
Sell 2	Call	$48.00	$1.40
Buy 1	Call	$51.00	$0.31

VZ butterfly risk and reward

Net Premium / Debit: -$37.50
Max Profit (per contract): $139.89
Max Loss (per contract): -$137.50
Breakeven(s): $46.38, $49.63
Risk / Reward Ratio: 1.017

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.

VZ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on VZ. 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%	-$37.50
$10.73	-77.9%	-$37.50
$21.46	-55.8%	-$37.50
$32.18	-33.7%	-$37.50
$42.90	-11.5%	-$37.50
$53.62	+10.6%	-$137.50
$64.35	+32.7%	-$137.50
$75.07	+54.8%	-$137.50
$85.79	+76.9%	-$137.50
$96.51	+99.0%	-$137.50

When traders use butterfly on VZ

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

VZ thesis for this butterfly

The market-implied 1-standard-deviation range for VZ extends from approximately $45.65 on the downside to $51.35 on the upside. A VZ long call butterfly is a pinning play: it pays maximum at the middle strike if VZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VZ IV rank near 34.41% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on VZ should anchor more to the directional view and the expected-move geometry. As a Communication Services name, VZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VZ-specific events.

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

Frequently asked questions

What is a butterfly on VZ?: A butterfly on VZ is the butterfly strategy applied to VZ (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 VZ stock at $48.50 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed VZ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are VZ 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 VZ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.47%), the computed maximum profit is $139.89 per contract and the computed maximum loss is -$137.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VZ butterfly?: The breakeven for the VZ butterfly priced on this page is roughly $46.38 and $49.63 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 VZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on VZ?: Butterflies on VZ are pinning bets - traders use them when they expect VZ 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 VZ implied volatility affect this butterfly?: VZ ATM IV is at 20.47% with IV rank near 34.41%, 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.