DY Butterfly Strategy
DY (Dycom Industries, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Dycom Industries, Inc. provides specialty contracting services in the United States. The company offers program management and engineering services; plans and designs aerial, underground, and buried fiber optic, copper, and coaxial cable systems; and construction, maintenance, and installation services, such as placement and splicing of fiber, copper, and coaxial cables to telecommunications providers. It also provides tower construction, lines and antenna installation, foundation and equipment pad construction, and small cell site placement for wireless carriers, as well as equipment installation and material fabrication, and site testing services; and installs and maintains customer premise equipment, such as digital video recorders, set top boxes, and modems for cable system operators. In addition, the company offers construction and maintenance services for electric and gas utilities, and other customers; and underground facility locating services, such as locating telephone, cable television, power, water, sewer, and gas lines for various utility companies, including telecommunication providers. Dycom Industries, Inc. was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.
DY (Dycom Industries, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $13.35B, a trailing P/E of 45.96, a beta of 1.46 versus the broader market, a 52-week range of 186.42-464.82, average daily share volume of 423K, a public-listing history dating back to 1984, approximately 16K full-time employees. These structural characteristics shape how DY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.46 indicates DY 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 45.96 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 DY?
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 DY snapshot
As of May 15, 2026, spot at $437.68, ATM IV 66.80%, IV rank 77.10%, expected move 19.15%. The butterfly on DY 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 DY specifically: DY IV at 66.80% is rich versus its 1-year range, which makes a premium-buying DY butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 19.15% (roughly $83.82 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 DY expiries trade a higher absolute premium for lower per-day decay. Position sizing on DY should anchor to the underlying notional of $437.68 per share and to the trader's directional view on DY stock.
DY butterfly setup
The DY 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 DY near $437.68, the first option leg uses a $420.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DY 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 DY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $420.00 | $45.75 |
| Sell 2 | Call | $440.00 | $35.40 |
| Buy 1 | Call | $460.00 | $26.40 |
DY butterfly risk and reward
- Net Premium / Debit
- -$135.00
- Max Profit (per contract)
- $1,853.44
- Max Loss (per contract)
- -$135.00
- Breakeven(s)
- $420.48, $459.52
- Risk / Reward Ratio
- 13.729
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.
DY butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DY. 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% | -$135.00 |
| $96.78 | -77.9% | -$135.00 |
| $193.55 | -55.8% | -$135.00 |
| $290.33 | -33.7% | -$135.00 |
| $387.10 | -11.6% | -$135.00 |
| $483.87 | +10.6% | -$135.00 |
| $580.64 | +32.7% | -$135.00 |
| $677.42 | +54.8% | -$135.00 |
| $774.19 | +76.9% | -$135.00 |
| $870.96 | +99.0% | -$135.00 |
When traders use butterfly on DY
Butterflies on DY are pinning bets - traders use them when they expect DY 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.
DY thesis for this butterfly
The market-implied 1-standard-deviation range for DY extends from approximately $353.86 on the downside to $521.50 on the upside. A DY long call butterfly is a pinning play: it pays maximum at the middle strike if DY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DY IV rank near 77.10% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on DY at 66.80%. As a Industrials name, DY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DY-specific events.
DY 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. DY positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DY alongside the broader basket even when DY-specific fundamentals are unchanged. Always rebuild the position from current DY chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DY?
- A butterfly on DY is the butterfly strategy applied to DY (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 DY stock trading near $437.68, the strikes shown on this page are snapped to the nearest listed DY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DY 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 DY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 66.80%), the computed maximum profit is $1,853.44 per contract and the computed maximum loss is -$135.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DY butterfly?
- The breakeven for the DY butterfly priced on this page is roughly $420.48 and $459.52 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 DY market-implied 1-standard-deviation expected move is approximately 19.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DY?
- Butterflies on DY are pinning bets - traders use them when they expect DY 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 DY implied volatility affect this butterfly?
- DY ATM IV is at 66.80% with IV rank near 77.10%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.