How are WRBY 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 WRBY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 75.26%), the computed maximum profit is $129.32 per contract and the computed maximum loss is -$60.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WRBY butterfly?

The breakeven for the WRBY butterfly priced on this page is roughly $29.60 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 WRBY market-implied 1-standard-deviation expected move is approximately 21.58%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WRBY implied volatility affect this butterfly?

WRBY ATM IV is at 75.26% with IV rank near 64.81%, 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.

WRBY Butterfly Strategy

WRBY (Warby Parker Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NYSE.

Warby Parker Inc. operates as a purveyor of optical products and related services. Their extensive product line includes prescription eyeglasses, sunglasses, and contact lenses, alongside specialized lens options such as light-responsive (photochromic) and blue-light-filtering variants. Customers can also acquire a variety of accessories, including protective cases, lens care kits equipped with anti-fog spray, pouches, and individual anti-fog lens sprays. Beyond product sales, Warby Parker facilitates direct-to-consumer eye examinations and vision assessments. These services are accessible through their physical retail locations, online platform, and dedicated mobile applications. By May 16, 2022, the company had established a network of 160 brick-and-mortar stores across the United States and Canada.

WRBY (Warby Parker Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $3.59B, a trailing P/E of 2,681.52, a beta of 1.97 versus the broader market, a 52-week range of 14.96-31, average daily share volume of 3.1M, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how WRBY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.97 indicates WRBY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 2,681.52 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.

What is a butterfly on WRBY?

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 WRBY snapshot

As of June 30, 2026, spot at $30.64, ATM IV 75.26%, IV rank 64.81%, expected move 21.58%. The butterfly on WRBY 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 31-day expiry.

Why this butterfly structure on WRBY specifically: WRBY IV at 75.26% 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 21.58% (roughly $6.61 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WRBY expiries trade a higher absolute premium for lower per-day decay. Position sizing on WRBY should anchor to the underlying notional of $30.64 per share and to the trader's directional view on WRBY stock.

WRBY butterfly setup

The WRBY 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 WRBY near $30.64, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WRBY chain at a 31-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 WRBY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$29.00	$3.60
Sell 2	Call	$31.00	$2.58
Buy 1	Call	$32.00	$2.15

WRBY butterfly risk and reward

Net Premium / Debit: -$60.00
Max Profit (per contract): $129.32
Max Loss (per contract): -$60.00
Breakeven(s): $29.60
Risk / Reward Ratio: 2.155

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.

WRBY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on WRBY. 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%	-$60.00
$6.78	-77.9%	-$60.00
$13.56	-55.8%	-$60.00
$20.33	-33.6%	-$60.00
$27.10	-11.5%	-$60.00
$33.88	+10.6%	+$40.00
$40.65	+32.7%	+$40.00
$47.42	+54.8%	+$40.00
$54.20	+76.9%	+$40.00
$60.97	+99.0%	+$40.00

When traders use butterfly on WRBY

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

WRBY thesis for this butterfly

The market-implied 1-standard-deviation range for WRBY extends from approximately $24.03 on the downside to $37.25 on the upside. A WRBY long call butterfly is a pinning play: it pays maximum at the middle strike if WRBY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WRBY IV rank near 64.81% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on WRBY should anchor more to the directional view and the expected-move geometry. As a Healthcare name, WRBY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WRBY-specific events.

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

Frequently asked questions

What is a butterfly on WRBY?: A butterfly on WRBY is the butterfly strategy applied to WRBY (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 WRBY stock trading near $30.64, the strikes shown on this page are snapped to the nearest listed WRBY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WRBY 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 WRBY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 75.26%), the computed maximum profit is $129.32 per contract and the computed maximum loss is -$60.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WRBY butterfly?: The breakeven for the WRBY butterfly priced on this page is roughly $29.60 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 WRBY market-implied 1-standard-deviation expected move is approximately 21.58%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on WRBY?: Butterflies on WRBY are pinning bets - traders use them when they expect WRBY 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 WRBY implied volatility affect this butterfly?: WRBY ATM IV is at 75.26% with IV rank near 64.81%, 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.