How are WFRD 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 WFRD butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 39.10%), the computed maximum profit is $309.49 per contract and the computed maximum loss is -$187.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WFRD butterfly?

The breakeven for the WFRD butterfly priced on this page is roughly $91.88 and $98.13 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 WFRD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WFRD implied volatility affect this butterfly?

WFRD ATM IV is at 39.10% with IV rank near 60.61%, 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.

WFRD Butterfly Strategy

WFRD (Weatherford International plc), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NASDAQ.

Weatherford International plc is a prominent energy services enterprise that supplies an extensive range of equipment and specialized services on a global scale. The company supports the full lifecycle of oil, geothermal, and natural gas wells, covering initial drilling, thorough evaluation, well completion, ongoing production, and crucial intervention activities. Its operations are organized into two main geographical divisions: the Western Hemisphere and the Eastern Hemisphere. Weatherford's diverse offerings include numerous artificial lift systems, such as reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid configurations, alongside their associated automation and control systems. They also deliver pressure pumping and reservoir stimulation solutions, encompassing acidizing, hydraulic fracturing, cementing, and coiled-tubing interventions. For well assessment, the company provides drill stem testing tools, surface well testing, and multiphase flow measurement services.

WFRD (Weatherford International plc) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $6.79B, a trailing P/E of 18.62, a beta of 0.89 versus the broader market, a 52-week range of 54.685-113.15, average daily share volume of 1.3M, a public-listing history dating back to 2021, approximately 17K full-time employees. These structural characteristics shape how WFRD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.89 places WFRD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WFRD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on WFRD?

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.

WFRD snapshot

As of August 14, 2026, spot at $94.55, ATM IV 39.10%, IV rank 60.61%, expected move 11.21%. The butterfly on WFRD 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 7-day expiry.

Why this butterfly structure on WFRD specifically: WFRD IV at 39.10% 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 11.21% (roughly $10.60 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WFRD expiries trade a higher absolute premium for lower per-day decay. Position sizing on WFRD should anchor to the underlying notional of $94.55 per share and to the trader's directional view on WFRD stock.

WFRD butterfly setup

The WFRD 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 WFRD at $94.55 on that close, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WFRD chain at a 7-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 WFRD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$90.00	$5.00
Sell 2	Call	$95.00	$1.88
Buy 1	Call	$100.00	$0.63

WFRD butterfly risk and reward

Net Premium / Debit: -$187.50
Max Profit (per contract): $309.49
Max Loss (per contract): -$187.50
Breakeven(s): $91.88, $98.13
Risk / Reward Ratio: 1.651

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.

WFRD butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on WFRD. 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%	-$187.50
$20.91	-77.9%	-$187.50
$41.82	-55.8%	-$187.50
$62.72	-33.7%	-$187.50
$83.63	-11.6%	-$187.50
$104.53	+10.6%	-$187.50
$125.44	+32.7%	-$187.50
$146.34	+54.8%	-$187.50
$167.25	+76.9%	-$187.50
$188.15	+99.0%	-$187.50

When traders use butterfly on WFRD

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

WFRD thesis for this butterfly

The market-implied 1-standard-deviation range for WFRD extends from approximately $83.95 on the downside to $105.15 on the upside. A WFRD long call butterfly is a pinning play: it pays maximum at the middle strike if WFRD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WFRD IV rank near 60.61% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on WFRD should anchor more to the directional view and the expected-move geometry. As a Energy name, WFRD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WFRD-specific events.

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

Frequently asked questions

What is a butterfly on WFRD?: A butterfly on WFRD is the butterfly strategy applied to WFRD (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 WFRD stock at $94.55 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed WFRD chain strike and the premiums come straight from that session's bid/ask midpoint.
How are WFRD 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 WFRD butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 39.10%), the computed maximum profit is $309.49 per contract and the computed maximum loss is -$187.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WFRD butterfly?: The breakeven for the WFRD butterfly priced on this page is roughly $91.88 and $98.13 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 WFRD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on WFRD?: Butterflies on WFRD are pinning bets - traders use them when they expect WFRD 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 WFRD implied volatility affect this butterfly?: WFRD ATM IV is at 39.10% with IV rank near 60.61%, 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.