How are WEC 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 WEC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 18.40%), the computed maximum profit is $296.94 per contract and the computed maximum loss is -$192.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WEC butterfly?

The breakeven for the WEC butterfly priced on this page is roughly $106.93 and $113.08 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 WEC market-implied 1-standard-deviation expected move is approximately 5.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WEC implied volatility affect this butterfly?

WEC ATM IV is at 18.40% with IV rank near 3.10%, 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.

WEC Butterfly Strategy

WEC (WEC Energy Group, Inc.), in the Utilities sector, (Regulated Electric industry), listed on NYSE.

WEC Energy Group, Inc., through its subsidiaries, provides regulated natural gas and electricity, and renewable and nonregulated renewable energy services in the United States. The company operates through six segments: Wisconsin, Illinois, Other States, Electric Transmission, Non-Utility Energy Infrastructure, and Corporate and Other. It generates and distributes electricity from coal, natural gas, oil, hydroelectric, wind, solar, and biomass sources; provides electric transmission services; offers retail natural gas distribution services; transports natural gas; and generates, distributes, and sells steam. As of December 31, 2021, it operated approximately 35,800 miles of overhead distribution lines and 35,600 miles of underground distribution cables, as well as 440 electric distribution substations and 510,500 line transformers; 50,900 miles of natural gas distribution mains; 1,200 miles of natural gas transmission mains; 2.3 million natural gas lateral services; 500 natural gas distribution and transmission gate stations; and 68.2 billion cubic feet of working gas capacities in underground natural gas storage fields. The company was formerly known as Wisconsin Energy Corporation and changed its name to WEC Energy Group, Inc. in June 2015. WEC Energy Group, Inc. was incorporated in 1981 and is headquartered in Milwaukee, Wisconsin.

WEC (WEC Energy Group, Inc.) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $36.55B, a trailing P/E of 22.29, a beta of 0.49 versus the broader market, a 52-week range of 102.49-119.62, average daily share volume of 2.0M, a public-listing history dating back to 1980, approximately 7K full-time employees. These structural characteristics shape how WEC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.49 indicates WEC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WEC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on WEC?

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 WEC snapshot

As of May 15, 2026, spot at $109.34, ATM IV 18.40%, IV rank 3.10%, expected move 5.28%. The butterfly on WEC 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 WEC specifically: WEC IV at 18.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a WEC butterfly, with a market-implied 1-standard-deviation move of approximately 5.28% (roughly $5.77 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 WEC expiries trade a higher absolute premium for lower per-day decay. Position sizing on WEC should anchor to the underlying notional of $109.34 per share and to the trader's directional view on WEC stock.

WEC butterfly setup

The WEC 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 WEC near $109.34, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WEC 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 WEC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$105.00	$5.70
Sell 2	Call	$110.00	$2.25
Buy 1	Call	$115.00	$0.73

WEC butterfly risk and reward

Net Premium / Debit: -$192.50
Max Profit (per contract): $296.94
Max Loss (per contract): -$192.50
Breakeven(s): $106.93, $113.08
Risk / Reward Ratio: 1.543

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.

WEC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on WEC. 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%	-$192.50
$24.18	-77.9%	-$192.50
$48.36	-55.8%	-$192.50
$72.53	-33.7%	-$192.50
$96.71	-11.6%	-$192.50
$120.88	+10.6%	-$192.50
$145.06	+32.7%	-$192.50
$169.23	+54.8%	-$192.50
$193.41	+76.9%	-$192.50
$217.58	+99.0%	-$192.50

When traders use butterfly on WEC

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

WEC thesis for this butterfly

The market-implied 1-standard-deviation range for WEC extends from approximately $103.57 on the downside to $115.11 on the upside. A WEC long call butterfly is a pinning play: it pays maximum at the middle strike if WEC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WEC IV rank near 3.10% 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 WEC at 18.40%. As a Utilities name, WEC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WEC-specific events.

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

Frequently asked questions

What is a butterfly on WEC?: A butterfly on WEC is the butterfly strategy applied to WEC (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 WEC stock trading near $109.34, the strikes shown on this page are snapped to the nearest listed WEC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WEC 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 WEC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 18.40%), the computed maximum profit is $296.94 per contract and the computed maximum loss is -$192.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WEC butterfly?: The breakeven for the WEC butterfly priced on this page is roughly $106.93 and $113.08 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 WEC market-implied 1-standard-deviation expected move is approximately 5.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on WEC?: Butterflies on WEC are pinning bets - traders use them when they expect WEC 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 WEC implied volatility affect this butterfly?: WEC ATM IV is at 18.40% with IV rank near 3.10%, 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.