EGP Butterfly Strategy
EGP (EastGroup Properties, Inc.), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.
EastGroup Properties, Inc. (NYSE: EGP), an S&P MidCap 400 company, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 15,000 to 70,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 45.8 million square feet.
EGP (EastGroup Properties, Inc.) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $10.94B, a trailing P/E of 37.18, a beta of 1.07 versus the broader market, a 52-week range of 159.37-206.78, average daily share volume of 400K, a public-listing history dating back to 1983, approximately 101 full-time employees. These structural characteristics shape how EGP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places EGP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 37.18 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. EGP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on EGP?
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 EGP snapshot
As of May 15, 2026, spot at $200.62, ATM IV 18.70%, IV rank 1.08%, expected move 5.36%. The butterfly on EGP 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 EGP specifically: EGP IV at 18.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a EGP butterfly, with a market-implied 1-standard-deviation move of approximately 5.36% (roughly $10.76 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 EGP expiries trade a higher absolute premium for lower per-day decay. Position sizing on EGP should anchor to the underlying notional of $200.62 per share and to the trader's directional view on EGP stock.
EGP butterfly setup
The EGP 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 EGP near $200.62, the first option leg uses a $190.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EGP 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 EGP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $190.00 | $12.90 |
| Sell 2 | Call | $200.00 | $5.30 |
| Buy 1 | Call | $210.00 | $1.68 |
EGP butterfly risk and reward
- Net Premium / Debit
- -$397.50
- Max Profit (per contract)
- $564.19
- Max Loss (per contract)
- -$397.50
- Breakeven(s)
- $193.98, $206.03
- Risk / Reward Ratio
- 1.419
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.
EGP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on EGP. 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% | -$397.50 |
| $44.37 | -77.9% | -$397.50 |
| $88.72 | -55.8% | -$397.50 |
| $133.08 | -33.7% | -$397.50 |
| $177.44 | -11.6% | -$397.50 |
| $221.80 | +10.6% | -$397.50 |
| $266.15 | +32.7% | -$397.50 |
| $310.51 | +54.8% | -$397.50 |
| $354.87 | +76.9% | -$397.50 |
| $399.22 | +99.0% | -$397.50 |
When traders use butterfly on EGP
Butterflies on EGP are pinning bets - traders use them when they expect EGP 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.
EGP thesis for this butterfly
The market-implied 1-standard-deviation range for EGP extends from approximately $189.86 on the downside to $211.38 on the upside. A EGP long call butterfly is a pinning play: it pays maximum at the middle strike if EGP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current EGP IV rank near 1.08% 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 EGP at 18.70%. As a Real Estate name, EGP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EGP-specific events.
EGP 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. EGP positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EGP alongside the broader basket even when EGP-specific fundamentals are unchanged. Always rebuild the position from current EGP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on EGP?
- A butterfly on EGP is the butterfly strategy applied to EGP (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 EGP stock trading near $200.62, the strikes shown on this page are snapped to the nearest listed EGP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EGP 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 EGP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 18.70%), the computed maximum profit is $564.19 per contract and the computed maximum loss is -$397.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EGP butterfly?
- The breakeven for the EGP butterfly priced on this page is roughly $193.98 and $206.03 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 EGP market-implied 1-standard-deviation expected move is approximately 5.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on EGP?
- Butterflies on EGP are pinning bets - traders use them when they expect EGP 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 EGP implied volatility affect this butterfly?
- EGP ATM IV is at 18.70% with IV rank near 1.08%, 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.