ECG Butterfly Strategy
ECG (Everus Construction Group, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Everus Construction Group, Inc. provides utility construction services. It offers electrical line construction, pipeline construction, inside electrical wiring and cabling, and mechanical services. The company also involves in the manufacture and distribution of specialty equipment, and electrical control panel; and installation and maintenance of automatic fire sprinkler systems in Las Vegas and Reno. The company was incorporated in 1995 and is based in Bismarck, North Dakota.
ECG (Everus Construction Group, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $8.21B, a trailing P/E of 36.76, a beta of 2.63 versus the broader market, a 52-week range of 55.31-171.577, average daily share volume of 655K, a public-listing history dating back to 2024, approximately 9K full-time employees. These structural characteristics shape how ECG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.63 indicates ECG 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 36.76 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 ECG?
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 ECG snapshot
As of May 15, 2026, spot at $156.19, ATM IV 54.70%, IV rank 11.31%, expected move 15.68%. The butterfly on ECG 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 ECG specifically: ECG IV at 54.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a ECG butterfly, with a market-implied 1-standard-deviation move of approximately 15.68% (roughly $24.49 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 ECG expiries trade a higher absolute premium for lower per-day decay. Position sizing on ECG should anchor to the underlying notional of $156.19 per share and to the trader's directional view on ECG stock.
ECG butterfly setup
The ECG 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 ECG near $156.19, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ECG 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 ECG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $150.00 | $14.55 |
| Sell 2 | Call | $155.00 | $11.45 |
| Buy 1 | Call | $165.00 | $7.15 |
ECG butterfly risk and reward
- Net Premium / Debit
- +$120.00
- Max Profit (per contract)
- $578.98
- Max Loss (per contract)
- -$380.00
- Breakeven(s)
- $161.20
- Risk / Reward Ratio
- 1.524
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.
ECG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ECG. 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% | +$120.00 |
| $34.54 | -77.9% | +$120.00 |
| $69.08 | -55.8% | +$120.00 |
| $103.61 | -33.7% | +$120.00 |
| $138.14 | -11.6% | +$120.00 |
| $172.68 | +10.6% | -$380.00 |
| $207.21 | +32.7% | -$380.00 |
| $241.74 | +54.8% | -$380.00 |
| $276.28 | +76.9% | -$380.00 |
| $310.81 | +99.0% | -$380.00 |
When traders use butterfly on ECG
Butterflies on ECG are pinning bets - traders use them when they expect ECG 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.
ECG thesis for this butterfly
The market-implied 1-standard-deviation range for ECG extends from approximately $131.70 on the downside to $180.68 on the upside. A ECG long call butterfly is a pinning play: it pays maximum at the middle strike if ECG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ECG IV rank near 11.31% 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 ECG at 54.70%. As a Industrials name, ECG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ECG-specific events.
ECG 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. ECG positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ECG alongside the broader basket even when ECG-specific fundamentals are unchanged. Always rebuild the position from current ECG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ECG?
- A butterfly on ECG is the butterfly strategy applied to ECG (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 ECG stock trading near $156.19, the strikes shown on this page are snapped to the nearest listed ECG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ECG 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 ECG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 54.70%), the computed maximum profit is $578.98 per contract and the computed maximum loss is -$380.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ECG butterfly?
- The breakeven for the ECG butterfly priced on this page is roughly $161.20 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 ECG market-implied 1-standard-deviation expected move is approximately 15.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ECG?
- Butterflies on ECG are pinning bets - traders use them when they expect ECG 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 ECG implied volatility affect this butterfly?
- ECG ATM IV is at 54.70% with IV rank near 11.31%, 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.