How are WY 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 WY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.10%), the computed maximum profit is $61.77 per contract and the computed maximum loss is -$32.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WY butterfly?

The breakeven for the WY butterfly priced on this page is roughly $22.33 and $23.68 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 WY market-implied 1-standard-deviation expected move is approximately 8.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WY implied volatility affect this butterfly?

WY ATM IV is at 28.10% with IV rank near 41.70%, 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.

WY Butterfly Strategy

WY (Weyerhaeuser Company), in the Real Estate sector, (REIT - Specialty industry), listed on NYSE.

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2020, we generated $7.5 billion in net sales and employed approximately 9,400 people who serve customers worldwide.

WY (Weyerhaeuser Company) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $16.66B, a trailing P/E of 41.97, a beta of 0.91 versus the broader market, a 52-week range of 21.16-27.86, average daily share volume of 5.6M, a public-listing history dating back to 1973, approximately 9K full-time employees. These structural characteristics shape how WY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.91 places WY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 41.97 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. WY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on WY?

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 WY snapshot

As of May 15, 2026, spot at $22.71, ATM IV 28.10%, IV rank 41.70%, expected move 8.06%. The butterfly on WY 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 63-day expiry.

Why this butterfly structure on WY specifically: WY IV at 28.10% 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 8.06% (roughly $1.83 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WY expiries trade a higher absolute premium for lower per-day decay. Position sizing on WY should anchor to the underlying notional of $22.71 per share and to the trader's directional view on WY stock.

WY butterfly setup

The WY 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 WY near $22.71, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WY chain at a 63-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 WY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$22.00	$1.68
Sell 2	Call	$23.00	$0.93
Buy 1	Call	$24.00	$0.50

WY butterfly risk and reward

Net Premium / Debit: -$32.50
Max Profit (per contract): $61.77
Max Loss (per contract): -$32.50
Breakeven(s): $22.33, $23.68
Risk / Reward Ratio: 1.901

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.

WY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on WY. 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%	-$32.50
$5.03	-77.9%	-$32.50
$10.05	-55.7%	-$32.50
$15.07	-33.6%	-$32.50
$20.09	-11.5%	-$32.50
$25.11	+10.6%	-$32.50
$30.13	+32.7%	-$32.50
$35.15	+54.8%	-$32.50
$40.17	+76.9%	-$32.50
$45.19	+99.0%	-$32.50

When traders use butterfly on WY

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

WY thesis for this butterfly

The market-implied 1-standard-deviation range for WY extends from approximately $20.88 on the downside to $24.54 on the upside. A WY long call butterfly is a pinning play: it pays maximum at the middle strike if WY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WY IV rank near 41.70% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on WY should anchor more to the directional view and the expected-move geometry. As a Real Estate name, WY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WY-specific events.

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

Frequently asked questions

What is a butterfly on WY?: A butterfly on WY is the butterfly strategy applied to WY (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 WY stock trading near $22.71, the strikes shown on this page are snapped to the nearest listed WY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WY 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 WY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.10%), the computed maximum profit is $61.77 per contract and the computed maximum loss is -$32.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WY butterfly?: The breakeven for the WY butterfly priced on this page is roughly $22.33 and $23.68 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 WY market-implied 1-standard-deviation expected move is approximately 8.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on WY?: Butterflies on WY are pinning bets - traders use them when they expect WY 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 WY implied volatility affect this butterfly?: WY ATM IV is at 28.10% with IV rank near 41.70%, 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.