How are WWD 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 WWD butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.30%), the computed maximum profit is $1,485.03 per contract and the computed maximum loss is -$420.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WWD butterfly?

The breakeven for the WWD butterfly priced on this page is roughly $354.20 and $385.80 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 WWD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WWD implied volatility affect this butterfly?

WWD ATM IV is at 33.30% with IV rank near 23.90%, 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.

WWD Butterfly Strategy

WWD (Woodward, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NASDAQ.

Woodward, Inc. (WWD) stands as a prominent global entity, specializing in the engineering, production, and maintenance of advanced control solutions for both the aerospace and industrial sectors. The company organizes its operations into two distinct divisions: Aerospace and Industrial. Within its Aerospace segment, Woodward delivers a comprehensive array of crucial components. This includes fuel pumps, metering units, various types of actuators, air and specialized valves, fuel nozzles, and thrust reverser actuation systems, primarily designed for turbine engines and nacelles. Additionally, it provides flight deck controls, servocontrols, motors, and sensors for aircraft applications. These sophisticated offerings are integral to a wide range of platforms, encompassing commercial and private airplanes and rotorcraft, military fixed-wing and rotary-wing aircraft, guided munitions, and diverse defense systems.

WWD (Woodward, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $21.61B, a trailing P/E of 39.18, a beta of 0.88 versus the broader market, a 52-week range of 233.31-450.92, average daily share volume of 778K, a public-listing history dating back to 1994, approximately 10K full-time employees. These structural characteristics shape how WWD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.88 places WWD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 39.18 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. WWD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on WWD?

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.

WWD snapshot

As of August 14, 2026, spot at $369.09, ATM IV 33.30%, IV rank 23.90%, expected move 9.55%. The butterfly on WWD 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 WWD specifically: WWD IV at 33.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a WWD butterfly, with a market-implied 1-standard-deviation move of approximately 9.55% (roughly $35.24 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 WWD expiries trade a higher absolute premium for lower per-day decay. Position sizing on WWD should anchor to the underlying notional of $369.09 per share and to the trader's directional view on WWD stock.

WWD butterfly setup

The WWD 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 WWD at $369.09 on that close, the first option leg uses a $350.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WWD 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 WWD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$350.00	$26.15
Sell 2	Call	$370.00	$14.65
Buy 1	Call	$390.00	$7.35

WWD butterfly risk and reward

Net Premium / Debit: -$420.00
Max Profit (per contract): $1,485.03
Max Loss (per contract): -$420.00
Breakeven(s): $354.20, $385.80
Risk / Reward Ratio: 3.536

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.

WWD butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on WWD. 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%	-$420.00
$81.62	-77.9%	-$420.00
$163.22	-55.8%	-$420.00
$244.83	-33.7%	-$420.00
$326.44	-11.6%	-$420.00
$408.04	+10.6%	-$420.00
$489.65	+32.7%	-$420.00
$571.26	+54.8%	-$420.00
$652.86	+76.9%	-$420.00
$734.47	+99.0%	-$420.00

When traders use butterfly on WWD

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

WWD thesis for this butterfly

The market-implied 1-standard-deviation range for WWD extends from approximately $333.85 on the downside to $404.33 on the upside. A WWD long call butterfly is a pinning play: it pays maximum at the middle strike if WWD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WWD IV rank near 23.90% 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 WWD at 33.30%. As a Industrials name, WWD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WWD-specific events.

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

Frequently asked questions

What is a butterfly on WWD?: A butterfly on WWD is the butterfly strategy applied to WWD (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 WWD stock at $369.09 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed WWD chain strike and the premiums come straight from that session's bid/ask midpoint.
How are WWD 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 WWD butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.30%), the computed maximum profit is $1,485.03 per contract and the computed maximum loss is -$420.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WWD butterfly?: The breakeven for the WWD butterfly priced on this page is roughly $354.20 and $385.80 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 WWD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on WWD?: Butterflies on WWD are pinning bets - traders use them when they expect WWD 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 WWD implied volatility affect this butterfly?: WWD ATM IV is at 33.30% with IV rank near 23.90%, 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.