How are XNDU 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 XNDU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 153.37%), the computed maximum profit is $155.00 per contract and the computed maximum loss is $55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XNDU butterfly?

The breakeven for the XNDU butterfly priced on this page is no defined breakeven on the modeled curve 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 XNDU market-implied 1-standard-deviation expected move is approximately 43.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XNDU implied volatility affect this butterfly?

Current XNDU ATM IV is 153.37%; IV rank context is unavailable in the current snapshot.

XNDU Butterfly Strategy

XNDU (Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.

Xanadu Quantum Technologies Inc. develops and provides photonic quantum computing hardware and software platforms, including cloud-based access to quantum computers and tools for quantum programming and simulation. The company provides access to photonic quantum computers through x-series devices available via the cloud, supporting programmable quantum gates and photon-number resolving detectors. It offers Pennylane, a Python library for quantum programming and differentiable quantum programming, enabling integration with machine learning tools and support for quantum-classical applications; Catalyst for just-in-time compilation and optimization of quantum algorithms; and Lightning, a high-performance quantum simulator for CPU and GPU that integrates with Pennylane. Users have access to documentation, tutorials, guides, and community-led resources for quantum machine learning, quantum chemistry simulations, and other quantum computing applications, along with collaboration and support from a team of quantum experts. The company serves professional clients in the quantum computing, software development, and machine learning sectors, as well as advanced users in research and development, including those utilizing high-performance computing and quantum hardware. The company was founded in 2016 and is based in Toronto, Canada.

XNDU (Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $337.1M, a beta of 2.76 versus the broader market, a 52-week range of 6.97-42.44, average daily share volume of 5.4M, a public-listing history dating back to 2026, approximately 3 full-time employees. These structural characteristics shape how XNDU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.76 indicates XNDU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on XNDU?

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 XNDU snapshot

As of May 15, 2026, spot at $13.71, ATM IV 153.37%, expected move 43.97%. The butterfly on XNDU 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 28-day expiry.

Why this butterfly structure on XNDU specifically: IV rank is unavailable in the current snapshot, so regime-based timing for XNDU is inferred from ATM IV at 153.37% alone, with a market-implied 1-standard-deviation move of approximately 43.97% (roughly $6.03 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated XNDU expiries trade a higher absolute premium for lower per-day decay. Position sizing on XNDU should anchor to the underlying notional of $13.71 per share and to the trader's directional view on XNDU stock.

XNDU butterfly setup

The XNDU 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 XNDU near $13.71, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XNDU chain at a 28-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 XNDU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$13.00	$2.00
Sell 2	Call	$14.00	$2.55
Buy 1	Call	$14.00	$2.55

XNDU butterfly risk and reward

Net Premium / Debit: +$55.00
Max Profit (per contract): $155.00
Max Loss (per contract): $55.00
Breakeven(s): None on modeled curve
Risk / Reward Ratio: 2.818

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.

XNDU butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on XNDU. 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	-99.9%	+$55.00
$3.04	-77.8%	+$55.00
$6.07	-55.7%	+$55.00
$9.10	-33.6%	+$55.00
$12.13	-11.5%	+$55.00
$15.16	+10.6%	+$155.00
$18.19	+32.7%	+$155.00
$21.22	+54.8%	+$155.00
$24.25	+76.9%	+$155.00
$27.28	+99.0%	+$155.00

When traders use butterfly on XNDU

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

XNDU thesis for this butterfly

The market-implied 1-standard-deviation range for XNDU extends from approximately $7.68 on the downside to $19.74 on the upside. A XNDU long call butterfly is a pinning play: it pays maximum at the middle strike if XNDU settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Technology name, XNDU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XNDU-specific events.

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

Frequently asked questions

What is a butterfly on XNDU?: A butterfly on XNDU is the butterfly strategy applied to XNDU (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 XNDU stock trading near $13.71, the strikes shown on this page are snapped to the nearest listed XNDU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XNDU 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 XNDU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 153.37%), the computed maximum profit is $155.00 per contract and the computed maximum loss is $55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XNDU butterfly?: The breakeven for the XNDU butterfly priced on this page is no defined breakeven on the modeled curve 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 XNDU market-implied 1-standard-deviation expected move is approximately 43.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on XNDU?: Butterflies on XNDU are pinning bets - traders use them when they expect XNDU 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 XNDU implied volatility affect this butterfly?: Current XNDU ATM IV is 153.37%; IV rank context is unavailable in the current snapshot.