How are WEX 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 WEX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), the computed maximum profit is $434.39 per contract and the computed maximum loss is -$545.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WEX butterfly?

The breakeven for the WEX butterfly priced on this page is roughly $135.45 and $144.76 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 WEX market-implied 1-standard-deviation expected move is approximately 10.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WEX implied volatility affect this butterfly?

WEX ATM IV is at 38.00% with IV rank near 44.24%, 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.

WEX Butterfly Strategy

WEX (WEX Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.

WEX Inc., a financial technology enterprise established in 1983 and headquartered in Portland, Maine, delivers diverse services across the United States and globally. The company, which operated as Wright Express Corporation until its name change in October 2012, structures its operations into three primary divisions. The Fleet Solutions segment specializes in comprehensive payment processing for vehicle fleets. Its offerings include complete customer and account management (spanning activation, retention, credit, and billing support), merchant services, and robust web-based analytics platforms designed to offer fleet managers crucial insights for optimizing expenses and capital. WEX distributes these solutions to commercial and governmental fleets of varying sizes, from local to long-haul, through both direct channels and co-branded or private label alliances. The Travel and Corporate Solutions segment provides sophisticated payment systems, which feature embedded payment functionalities, automated accounts payable, and spend management tools.

WEX (WEX Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $4.78B, a trailing P/E of 15.34, a beta of 0.85 versus the broader market, a 52-week range of 125.29-186.86, average daily share volume of 592K, a public-listing history dating back to 2005, approximately 7K full-time employees. These structural characteristics shape how WEX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.85 places WEX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on WEX?

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 WEX snapshot

As of June 30, 2026, spot at $139.09, ATM IV 38.00%, IV rank 44.24%, expected move 10.89%. The butterfly on WEX 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 17-day expiry.

Why this butterfly structure on WEX specifically: WEX IV at 38.00% 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 10.89% (roughly $15.15 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WEX expiries trade a higher absolute premium for lower per-day decay. Position sizing on WEX should anchor to the underlying notional of $139.09 per share and to the trader's directional view on WEX stock.

WEX butterfly setup

The WEX 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 WEX near $139.09, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WEX chain at a 17-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 WEX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$130.00	$10.65
Sell 2	Call	$140.00	$3.60
Buy 1	Call	$145.00	$2.00

WEX butterfly risk and reward

Net Premium / Debit: -$545.00
Max Profit (per contract): $434.39
Max Loss (per contract): -$545.00
Breakeven(s): $135.45, $144.76
Risk / Reward Ratio: 0.797

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.

WEX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on WEX. 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%	-$545.00
$30.76	-77.9%	-$545.00
$61.51	-55.8%	-$545.00
$92.27	-33.7%	-$545.00
$123.02	-11.6%	-$545.00
$153.77	+10.6%	-$45.00
$184.52	+32.7%	-$45.00
$215.28	+54.8%	-$45.00
$246.03	+76.9%	-$45.00
$276.78	+99.0%	-$45.00

When traders use butterfly on WEX

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

WEX thesis for this butterfly

The market-implied 1-standard-deviation range for WEX extends from approximately $123.94 on the downside to $154.24 on the upside. A WEX long call butterfly is a pinning play: it pays maximum at the middle strike if WEX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WEX IV rank near 44.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on WEX should anchor more to the directional view and the expected-move geometry. As a Technology name, WEX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WEX-specific events.

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

Frequently asked questions

What is a butterfly on WEX?: A butterfly on WEX is the butterfly strategy applied to WEX (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 WEX stock trading near $139.09, the strikes shown on this page are snapped to the nearest listed WEX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WEX 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 WEX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), the computed maximum profit is $434.39 per contract and the computed maximum loss is -$545.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WEX butterfly?: The breakeven for the WEX butterfly priced on this page is roughly $135.45 and $144.76 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 WEX market-implied 1-standard-deviation expected move is approximately 10.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on WEX?: Butterflies on WEX are pinning bets - traders use them when they expect WEX 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 WEX implied volatility affect this butterfly?: WEX ATM IV is at 38.00% with IV rank near 44.24%, 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.