How are CNM 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 CNM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 50.30%), the computed maximum profit is $185.29 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CNM butterfly?

The breakeven for the CNM butterfly priced on this page is roughly $45.53 and $49.48 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 CNM market-implied 1-standard-deviation expected move is approximately 14.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CNM implied volatility affect this butterfly?

CNM ATM IV is at 50.30% with IV rank near 54.16%, 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.

CNM Butterfly Strategy

CNM (Core & Main, Inc.), in the Industrials sector, (Industrial - Distribution industry), listed on NYSE.

Core & Main, Inc. distributes water, wastewater, storm drainage, and fire protection products and related services to municipalities, private water companies, and professional contractors in the municipal, non-residential, and residential end markets in the United States. Its products include pipes, valves, hydrants, fittings, and other products and services; storm drainage products, such as corrugated piping systems, retention basins, inline drains, manholes, grates, geosynthetics, and other related products; fire protection products, including fire protection pipes, sprinkler heads and other devices, fire suppression systems, and related accessories, as well as fabrication services; and meter products, such as smart meter products, installation, software and other services. The company's specialty products and services are used in the maintenance, repair, replacement, and construction of water and fire protection infrastructure. Core & Main, Inc. was founded in 1874 and is headquartered in St. Louis, Missouri.

CNM (Core & Main, Inc.) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $8.91B, a trailing P/E of 20.44, a beta of 0.93 versus the broader market, a 52-week range of 43.96-67.18, average daily share volume of 2.5M, a public-listing history dating back to 2021, approximately 6K full-time employees. These structural characteristics shape how CNM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.93 places CNM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on CNM?

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 CNM snapshot

As of May 15, 2026, spot at $46.91, ATM IV 50.30%, IV rank 54.16%, expected move 14.42%. The butterfly on CNM 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 CNM specifically: CNM IV at 50.30% 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 14.42% (roughly $6.76 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 CNM expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNM should anchor to the underlying notional of $46.91 per share and to the trader's directional view on CNM stock.

CNM butterfly setup

The CNM 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 CNM near $46.91, the first option leg uses a $45.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNM 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 CNM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$45.00	$4.08
Sell 2	Call	$47.50	$2.70
Buy 1	Call	$50.00	$1.85

CNM butterfly risk and reward

Net Premium / Debit: -$52.50
Max Profit (per contract): $185.29
Max Loss (per contract): -$52.50
Breakeven(s): $45.53, $49.48
Risk / Reward Ratio: 3.529

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.

CNM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CNM. 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%	-$52.50
$10.38	-77.9%	-$52.50
$20.75	-55.8%	-$52.50
$31.12	-33.7%	-$52.50
$41.49	-11.5%	-$52.50
$51.86	+10.6%	-$52.50
$62.24	+32.7%	-$52.50
$72.61	+54.8%	-$52.50
$82.98	+76.9%	-$52.50
$93.35	+99.0%	-$52.50

When traders use butterfly on CNM

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

CNM thesis for this butterfly

The market-implied 1-standard-deviation range for CNM extends from approximately $40.15 on the downside to $53.67 on the upside. A CNM long call butterfly is a pinning play: it pays maximum at the middle strike if CNM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CNM IV rank near 54.16% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CNM should anchor more to the directional view and the expected-move geometry. As a Industrials name, CNM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNM-specific events.

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

Frequently asked questions

What is a butterfly on CNM?: A butterfly on CNM is the butterfly strategy applied to CNM (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 CNM stock trading near $46.91, the strikes shown on this page are snapped to the nearest listed CNM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CNM 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 CNM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 50.30%), the computed maximum profit is $185.29 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CNM butterfly?: The breakeven for the CNM butterfly priced on this page is roughly $45.53 and $49.48 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 CNM market-implied 1-standard-deviation expected move is approximately 14.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CNM?: Butterflies on CNM are pinning bets - traders use them when they expect CNM 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 CNM implied volatility affect this butterfly?: CNM ATM IV is at 50.30% with IV rank near 54.16%, 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.