BOH Butterfly Strategy
BOH (Bank of Hawaii Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides various financial products and services in Hawaii, Guam, and other Pacific Islands. It operates in three segments: Consumer Banking, Commercial Banking, and Treasury and Other. The Consumer Banking segment offers checking, savings, and time deposit accounts; residential mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards; private and international client banking, investment, credit, and trust services to individuals and families, and high-net-worth individuals; investment management; institutional investment advisory services to corporations, government entities, and foundations; and brokerage offerings, including equities, mutual funds, life insurance, and annuity products. This segment operates 54 branch locations and 307 ATMs throughout Hawaii and the Pacific Islands, and a customer service center, as well as through online and mobile banking. The Commercial Banking segment provides corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. It offers commercial lending and deposit products to middle-market and large companies, and government entities; commercial real estate mortgages to investors, developers, and builders; and international banking and merchant services.
BOH (Bank of Hawaii Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $3.00B, a trailing P/E of 13.67, a beta of 0.72 versus the broader market, a 52-week range of 59.36-82.74, average daily share volume of 422K, a public-listing history dating back to 1980, approximately 2K full-time employees. These structural characteristics shape how BOH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.72 places BOH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BOH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on BOH?
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 BOH snapshot
As of May 15, 2026, spot at $75.70, ATM IV 25.50%, IV rank 2.81%, expected move 7.31%. The butterfly on BOH 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 34-day expiry.
Why this butterfly structure on BOH specifically: BOH IV at 25.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a BOH butterfly, with a market-implied 1-standard-deviation move of approximately 7.31% (roughly $5.53 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BOH expiries trade a higher absolute premium for lower per-day decay. Position sizing on BOH should anchor to the underlying notional of $75.70 per share and to the trader's directional view on BOH stock.
BOH butterfly setup
The BOH 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 BOH near $75.70, the first option leg uses a $71.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BOH chain at a 34-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 BOH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $71.92 | N/A |
| Sell 2 | Call | $75.70 | N/A |
| Buy 1 | Call | $79.49 | N/A |
BOH butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
BOH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BOH. 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.
When traders use butterfly on BOH
Butterflies on BOH are pinning bets - traders use them when they expect BOH 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.
BOH thesis for this butterfly
The market-implied 1-standard-deviation range for BOH extends from approximately $70.17 on the downside to $81.23 on the upside. A BOH long call butterfly is a pinning play: it pays maximum at the middle strike if BOH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BOH IV rank near 2.81% 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 BOH at 25.50%. As a Financial Services name, BOH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BOH-specific events.
BOH 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. BOH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BOH alongside the broader basket even when BOH-specific fundamentals are unchanged. Always rebuild the position from current BOH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BOH?
- A butterfly on BOH is the butterfly strategy applied to BOH (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 BOH stock trading near $75.70, the strikes shown on this page are snapped to the nearest listed BOH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BOH 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 BOH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 25.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BOH butterfly?
- The breakeven for the BOH 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 BOH market-implied 1-standard-deviation expected move is approximately 7.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BOH?
- Butterflies on BOH are pinning bets - traders use them when they expect BOH 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 BOH implied volatility affect this butterfly?
- BOH ATM IV is at 25.50% with IV rank near 2.81%, 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.