EPAC Butterfly Strategy
EPAC (Enerpac Tool Group Corp.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Enerpac Tool Group Corp. is a global enterprise specializing in the production and distribution of a diverse array of industrial products and solutions. Its operations span multiple key international markets, including the United States, the United Kingdom, Germany, Australia, Canada, China, Saudi Arabia, and Brazil. The company is structured into two main operating divisions: Industrial Tools & Services (IT&S) and Other. The Industrial Tools & Services (IT&S) segment forms the company's core, focusing on the development, manufacturing, and distribution of a broad spectrum of branded hydraulic and mechanical tools. It also provides essential services, including tool rentals, maintenance, and specialized manpower. This segment serves critical industries like infrastructure, industrial maintenance, repair and operations (MRO), oil and gas, mining, renewable energy, and construction.
EPAC (Enerpac Tool Group Corp.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $1.92B, a trailing P/E of 20.52, a beta of 0.87 versus the broader market, a 52-week range of 32.35-45, average daily share volume of 486K, a public-listing history dating back to 2000, approximately 2K full-time employees. These structural characteristics shape how EPAC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.87 places EPAC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EPAC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on EPAC?
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.
EPAC snapshot
As of August 14, 2026, spot at $36.86, ATM IV 49.70%, IV rank 7.72%, expected move 14.25%. The butterfly on EPAC below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on EPAC specifically: EPAC IV at 49.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a EPAC butterfly, with a market-implied 1-standard-deviation move of approximately 14.25% (roughly $5.25 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EPAC expiries trade a higher absolute premium for lower per-day decay. Position sizing on EPAC should anchor to the underlying notional of $36.86 per share and to the trader's directional view on EPAC stock.
EPAC butterfly setup
The EPAC 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 EPAC at $36.86 on that close, the first option leg uses a $35.02 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EPAC chain at a 35-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 EPAC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.02 | N/A |
| Sell 2 | Call | $36.86 | N/A |
| Buy 1 | Call | $38.70 | N/A |
EPAC 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.
EPAC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on EPAC. 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 EPAC
Butterflies on EPAC are pinning bets - traders use them when they expect EPAC 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.
EPAC thesis for this butterfly
The market-implied 1-standard-deviation range for EPAC extends from approximately $31.61 on the downside to $42.11 on the upside. A EPAC long call butterfly is a pinning play: it pays maximum at the middle strike if EPAC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current EPAC IV rank near 7.72% 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 EPAC at 49.70%. As a Industrials name, EPAC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EPAC-specific events.
EPAC 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. EPAC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EPAC alongside the broader basket even when EPAC-specific fundamentals are unchanged. Always rebuild the position from current EPAC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on EPAC?
- A butterfly on EPAC is the butterfly strategy applied to EPAC (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 EPAC stock at $36.86 on the most recent close, the strikes shown on this page are snapped to the nearest listed EPAC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are EPAC 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 EPAC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 49.70%), 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 EPAC butterfly?
- The breakeven for the EPAC butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The EPAC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on EPAC?
- Butterflies on EPAC are pinning bets - traders use them when they expect EPAC 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 EPAC implied volatility affect this butterfly?
- EPAC ATM IV is at 49.70% with IV rank near 7.72%, 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.