How are WDFC 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 WDFC butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.80%), the computed maximum profit is $820.73 per contract and the computed maximum loss is -$165.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WDFC butterfly?

The breakeven for the WDFC butterfly priced on this page is roughly $221.65 and $238.35 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 WDFC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WDFC implied volatility affect this butterfly?

WDFC ATM IV is at 27.80% with IV rank near 12.54%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

WDFC Butterfly Strategy

WDFC (WD-40 Company), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NASDAQ.

Operating globally across the Americas, Europe, the Middle East, Africa, and the Asia Pacific, WD-40 Company specializes in manufacturing and distributing a comprehensive array of maintenance, homecare, and cleaning products. Its maintenance solutions include the widely recognized WD-40 Multi-Use brand, offered in aerosol, non-aerosol trigger spray, and liquid-bulk formats for various general purposes. For more specific tasks, the WD-40 Specialist line provides penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers. The company also caters to cyclists with products under the WD-40 Bike and GT85 brands, the latter focusing on professional-grade spray maintenance and lubricants. Additionally, the 3-IN-ONE brand encompasses multi-purpose and specialty drip oils, spray lubricants, and other unique maintenance items. Beyond maintenance, WD-40 Company supplies a robust selection of homecare and cleaning products.

WDFC (WD-40 Company) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $3.12B, a trailing P/E of 35.05, a beta of 0.27 versus the broader market, a 52-week range of 175.38-298.9, average daily share volume of 180K, a public-listing history dating back to 1973, approximately 714 full-time employees. These structural characteristics shape how WDFC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.27 indicates WDFC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 35.05 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. WDFC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on WDFC?

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.

WDFC snapshot

As of August 14, 2026, spot at $231.30, ATM IV 27.80%, IV rank 12.54%, expected move 7.97%. The butterfly on WDFC 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 WDFC specifically: WDFC IV at 27.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a WDFC butterfly, with a market-implied 1-standard-deviation move of approximately 7.97% (roughly $18.43 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 WDFC expiries trade a higher absolute premium for lower per-day decay. Position sizing on WDFC should anchor to the underlying notional of $231.30 per share and to the trader's directional view on WDFC stock.

WDFC butterfly setup

The WDFC 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 WDFC at $231.30 on that close, the first option leg uses a $220.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WDFC 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 WDFC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$220.00	$14.40
Sell 2	Call	$230.00	$8.45
Buy 1	Call	$240.00	$4.15

WDFC butterfly risk and reward

Net Premium / Debit: -$165.00
Max Profit (per contract): $820.73
Max Loss (per contract): -$165.00
Breakeven(s): $221.65, $238.35
Risk / Reward Ratio: 4.974

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.

WDFC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on WDFC. 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%	-$165.00
$51.15	-77.9%	-$165.00
$102.29	-55.8%	-$165.00
$153.43	-33.7%	-$165.00
$204.57	-11.6%	-$165.00
$255.71	+10.6%	-$165.00
$306.85	+32.7%	-$165.00
$357.99	+54.8%	-$165.00
$409.13	+76.9%	-$165.00
$460.28	+99.0%	-$165.00

When traders use butterfly on WDFC

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

WDFC thesis for this butterfly

The market-implied 1-standard-deviation range for WDFC extends from approximately $212.87 on the downside to $249.73 on the upside. A WDFC long call butterfly is a pinning play: it pays maximum at the middle strike if WDFC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WDFC IV rank near 12.54% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on WDFC at 27.80%. As a Basic Materials name, WDFC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WDFC-specific events.

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

Frequently asked questions

What is a butterfly on WDFC?: A butterfly on WDFC is the butterfly strategy applied to WDFC (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 WDFC stock at $231.30 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed WDFC chain strike and the premiums come straight from that session's bid/ask midpoint.
How are WDFC 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 WDFC butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.80%), the computed maximum profit is $820.73 per contract and the computed maximum loss is -$165.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WDFC butterfly?: The breakeven for the WDFC butterfly priced on this page is roughly $221.65 and $238.35 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 WDFC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on WDFC?: Butterflies on WDFC are pinning bets - traders use them when they expect WDFC 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 WDFC implied volatility affect this butterfly?: WDFC ATM IV is at 27.80% with IV rank near 12.54%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.