ADVANCED · EXPIRATION PAYOFF

Butterfly Calculator

See the narrow profit region of a long call butterfly around its middle strike.

Your position

Illustrative starting values · USD

Use one stock or ETF and the same expiration for every option leg. Premiums are per share.

Stock quantities are shares. Option quantities are contracts. Enter the total fees for the entire position once.

How to use the butterfly calculator

Buy one lower-strike call, sell two middle-strike calls, and buy one higher-strike call. A standard butterfly uses equal strike spacing and the same expiration.

Understanding the payoff

For equal wings, maximum loss is the debit. Maximum profit = (wing width − debit per share) × shares represented by one wing. Breakevens are lower strike + debit per share and upper strike − debit per share.

These formulas describe the standard strategy before fees. The results above include the total fees entered and are calculated from your actual legs.

Worked example

Buy the $95 call for $7, sell two $100 calls for $4 each, and buy the $105 call for $2. The $100 debit has a maximum profit of $400 at $100, with breakevens at $96 and $104 before fees.

Read the strategy guide →

Assumptions and limits

This is an expiration payoff estimate, not a live option quote or a prediction. It assumes all option legs expire together on one stock or ETF, the stock price cannot be negative, and options settle at intrinsic value. The default multiplier is 100 shares per contract; adjust it for the contract being modeled. Early assignment, exercise decisions, dividends, interest, taxes, and slippage can change realized results. Cash requirements and broker margin are separate from maximum loss. Different expirations, futures options, and adjusted contracts with non-cash deliverables are not supported.

Method: add each leg’s intrinsic value at expiration, subtract its entry cost with the correct buy/sell sign, and subtract total fees. See Cboe’s worked spread example on Fidelity for a reference calculation.