How are YETI 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 YETI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.20%), the computed maximum profit is $202.73 per contract and the computed maximum loss is -$45.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a YETI butterfly?

The breakeven for the YETI butterfly priced on this page is roughly $40.45 and $44.55 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 YETI market-implied 1-standard-deviation expected move is approximately 12.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current YETI implied volatility affect this butterfly?

YETI ATM IV is at 42.20% with IV rank near 12.17%, 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.

YETI Butterfly Strategy

YETI (YETI Holdings, Inc.), in the Consumer Cyclical sector, (Leisure industry), listed on NYSE.

YETI Holdings, Inc. designs, markets, retails, and distributes products for the outdoor and recreation market under the YETI brand. The company offers hard and soft coolers, as well as cargo, bags, outdoor living, and associated accessories. It also provides drinkware products, such as colsters, lowballs, wine tumblers, stackable pints, mugs, tumblers, bottles, and jugs, as well as accessories comprising bottle straw caps, tumbler handles, jug mounts, and bottle slings under the Rambler brand. In addition, the company offers YETI-branded gear products, such as hats, shirts, bottle openers, and ice substitutes. It sells its products through independent retailers, including outdoor specialty, hardware, sporting goods, and farm and ranch supply stores, as well as through Website. The company operates in the United States, Canada, Australia, New Zealand, Europe, Hong Kong, China, Singapore, and Japan.

YETI (YETI Holdings, Inc.) trades in the Consumer Cyclical sector, specifically Leisure, with a market capitalization of approximately $2.90B, a trailing P/E of 17.80, a beta of 1.69 versus the broader market, a 52-week range of 28.98-51.29, average daily share volume of 1.5M, a public-listing history dating back to 2018, approximately 1K full-time employees. These structural characteristics shape how YETI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.69 indicates YETI 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 YETI?

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 YETI snapshot

As of May 15, 2026, spot at $42.26, ATM IV 42.20%, IV rank 12.17%, expected move 12.10%. The butterfly on YETI 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 245-day expiry.

Why this butterfly structure on YETI specifically: YETI IV at 42.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a YETI butterfly, with a market-implied 1-standard-deviation move of approximately 12.10% (roughly $5.11 on the underlying). The 245-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated YETI expiries trade a higher absolute premium for lower per-day decay. Position sizing on YETI should anchor to the underlying notional of $42.26 per share and to the trader's directional view on YETI stock.

YETI butterfly setup

The YETI 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 YETI near $42.26, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed YETI chain at a 245-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 YETI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$40.00	$8.40
Sell 2	Call	$42.50	$7.00
Buy 1	Call	$45.00	$6.05

YETI butterfly risk and reward

Net Premium / Debit: -$45.00
Max Profit (per contract): $202.73
Max Loss (per contract): -$45.00
Breakeven(s): $40.45, $44.55
Risk / Reward Ratio: 4.505

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.

YETI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on YETI. 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%	-$45.00
$9.35	-77.9%	-$45.00
$18.70	-55.8%	-$45.00
$28.04	-33.7%	-$45.00
$37.38	-11.5%	-$45.00
$46.72	+10.6%	-$45.00
$56.07	+32.7%	-$45.00
$65.41	+54.8%	-$45.00
$74.75	+76.9%	-$45.00
$84.10	+99.0%	-$45.00

When traders use butterfly on YETI

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

YETI thesis for this butterfly

The market-implied 1-standard-deviation range for YETI extends from approximately $37.15 on the downside to $47.37 on the upside. A YETI long call butterfly is a pinning play: it pays maximum at the middle strike if YETI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current YETI IV rank near 12.17% 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 YETI at 42.20%. As a Consumer Cyclical name, YETI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to YETI-specific events.

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

Frequently asked questions

What is a butterfly on YETI?: A butterfly on YETI is the butterfly strategy applied to YETI (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 YETI stock trading near $42.26, the strikes shown on this page are snapped to the nearest listed YETI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are YETI 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 YETI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.20%), the computed maximum profit is $202.73 per contract and the computed maximum loss is -$45.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a YETI butterfly?: The breakeven for the YETI butterfly priced on this page is roughly $40.45 and $44.55 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 YETI market-implied 1-standard-deviation expected move is approximately 12.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on YETI?: Butterflies on YETI are pinning bets - traders use them when they expect YETI 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 YETI implied volatility affect this butterfly?: YETI ATM IV is at 42.20% with IV rank near 12.17%, 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.