BWMN Butterfly Strategy
BWMN (Bowman Consulting Group Ltd.), in the Industrials sector, (Engineering & Construction industry), listed on NASDAQ.
Bowman Consulting Group Ltd. provides a range of real estate, energy, infrastructure, and environmental management solutions in the United States. It offers civil and site engineering services, such as conceptual land planning, environmental consulting and permitting, planning/zoning and entitlements, roadway and highway designs, erosion and sediment designs, stormwater management designs, construction administration, traffic studies, floodplain studies, and utility relocation designs; and commissioning and energy efficiency services comprise construction observation, direct systems functional performance testing, system development readiness checklist, post occupancy review, review of construction documents, deferred/seasonal functional testing, final commissioning report, and commissioning review of submittals. The company also provides construction management services, including constructability review, value engineering, budgeting and cost estimating, interagency and utility coordination, onsite observation and report evaluation, public communication and outreach, and resident engineer services, as well as bid solicitation, documentation, and preparation services; and environmental consulting services consisting of wetlands and waters of the U.S. delineations, natural resources inventories, wildlife and vegetation surveys, threatened and endangered species surveys, endangered species conservation and management, wetland creation and enhancement design, NEPA documentation, section 404/401 permitting and compliance, NPDES permitting, and phase I environmental site assessment. In addition, it offers landscape architecture, land procurement and right-of-way acquisition, structural engineering, surveying and geospatial engineering, and transportation and water resources engineering services, as well as mechanical, electrical, and plumbing engineering services. Bowman Consulting Group Ltd. was incorporated in 1995 and is headquartered in Reston, Virginia.
BWMN (Bowman Consulting Group Ltd.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $573.4M, a trailing P/E of 50.89, a beta of 1.36 versus the broader market, a 52-week range of 24.265-45.83, average daily share volume of 154K, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how BWMN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.36 indicates BWMN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 50.89 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.
What is a butterfly on BWMN?
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 BWMN snapshot
As of May 15, 2026, spot at $31.40, ATM IV 56.10%, IV rank 44.22%, expected move 16.08%. The butterfly on BWMN 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 BWMN specifically: BWMN IV at 56.10% 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 16.08% (roughly $5.05 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 BWMN expiries trade a higher absolute premium for lower per-day decay. Position sizing on BWMN should anchor to the underlying notional of $31.40 per share and to the trader's directional view on BWMN stock.
BWMN butterfly setup
The BWMN 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 BWMN near $31.40, the first option leg uses a $29.83 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BWMN 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 BWMN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $29.83 | N/A |
| Sell 2 | Call | $31.40 | N/A |
| Buy 1 | Call | $32.97 | N/A |
BWMN 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.
BWMN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BWMN. 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 BWMN
Butterflies on BWMN are pinning bets - traders use them when they expect BWMN 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.
BWMN thesis for this butterfly
The market-implied 1-standard-deviation range for BWMN extends from approximately $26.35 on the downside to $36.45 on the upside. A BWMN long call butterfly is a pinning play: it pays maximum at the middle strike if BWMN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BWMN IV rank near 44.22% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on BWMN should anchor more to the directional view and the expected-move geometry. As a Industrials name, BWMN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BWMN-specific events.
BWMN 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. BWMN positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BWMN alongside the broader basket even when BWMN-specific fundamentals are unchanged. Always rebuild the position from current BWMN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BWMN?
- A butterfly on BWMN is the butterfly strategy applied to BWMN (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 BWMN stock trading near $31.40, the strikes shown on this page are snapped to the nearest listed BWMN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BWMN 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 BWMN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 56.10%), 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 BWMN butterfly?
- The breakeven for the BWMN 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 BWMN market-implied 1-standard-deviation expected move is approximately 16.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BWMN?
- Butterflies on BWMN are pinning bets - traders use them when they expect BWMN 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 BWMN implied volatility affect this butterfly?
- BWMN ATM IV is at 56.10% with IV rank near 44.22%, 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.