How are EXP 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 EXP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.50%), the computed maximum profit is $668.95 per contract and the computed maximum loss is -$320.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a EXP butterfly?

The breakeven for the EXP butterfly priced on this page is roughly $188.20 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 EXP market-implied 1-standard-deviation expected move is approximately 12.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current EXP implied volatility affect this butterfly?

EXP ATM IV is at 43.50% with IV rank near 92.54%, 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.

EXP Butterfly Strategy

EXP (Eagle Materials Inc.), in the Basic Materials sector, (Construction Materials industry), listed on NYSE.

Eagle Materials Inc., through its subsidiaries, produces and supplies heavy construction materials and light building materials in the United States. It operates through Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard segments. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures. It also manufactures and sells recycled paperboard to gypsum wallboard industry and other paperboard converters, as well as containerboard and lightweight packaging grades. In addition, the company engages in the sale of ready-mix concrete; and mining, extracting, production, and sale of aggregates, including crushed stones, sand, and gravel. Its products are used in commercial and residential construction; public construction projects; and projects to build, expand, and repair roads and highways.

EXP (Eagle Materials Inc.) trades in the Basic Materials sector, specifically Construction Materials, with a market capitalization of approximately $6.27B, a trailing P/E of 14.95, a beta of 1.38 versus the broader market, a 52-week range of 171.99-243.64, average daily share volume of 426K, a public-listing history dating back to 1994, approximately 3K full-time employees. These structural characteristics shape how EXP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.38 indicates EXP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. EXP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on EXP?

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 EXP snapshot

As of May 15, 2026, spot at $194.13, ATM IV 43.50%, IV rank 92.54%, expected move 12.47%. The butterfly on EXP 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 EXP specifically: EXP IV at 43.50% is rich versus its 1-year range, which makes a premium-buying EXP butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 12.47% (roughly $24.21 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 EXP expiries trade a higher absolute premium for lower per-day decay. Position sizing on EXP should anchor to the underlying notional of $194.13 per share and to the trader's directional view on EXP stock.

EXP butterfly setup

The EXP 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 EXP near $194.13, the first option leg uses a $185.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EXP 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 EXP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$185.00	$16.05
Sell 2	Call	$195.00	$10.45
Buy 1	Call	$200.00	$8.05

EXP butterfly risk and reward

Net Premium / Debit: -$320.00
Max Profit (per contract): $668.95
Max Loss (per contract): -$320.00
Breakeven(s): $188.20
Risk / Reward Ratio: 2.090

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.

EXP butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on EXP. 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%	-$320.00
$42.93	-77.9%	-$320.00
$85.85	-55.8%	-$320.00
$128.78	-33.7%	-$320.00
$171.70	-11.6%	-$320.00
$214.62	+10.6%	+$180.00
$257.54	+32.7%	+$180.00
$300.46	+54.8%	+$180.00
$343.39	+76.9%	+$180.00
$386.31	+99.0%	+$180.00

When traders use butterfly on EXP

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

EXP thesis for this butterfly

The market-implied 1-standard-deviation range for EXP extends from approximately $169.92 on the downside to $218.34 on the upside. A EXP long call butterfly is a pinning play: it pays maximum at the middle strike if EXP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current EXP IV rank near 92.54% 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 EXP at 43.50%. As a Basic Materials name, EXP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EXP-specific events.

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

Frequently asked questions

What is a butterfly on EXP?: A butterfly on EXP is the butterfly strategy applied to EXP (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 EXP stock trading near $194.13, the strikes shown on this page are snapped to the nearest listed EXP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are EXP 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 EXP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.50%), the computed maximum profit is $668.95 per contract and the computed maximum loss is -$320.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EXP butterfly?: The breakeven for the EXP butterfly priced on this page is roughly $188.20 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 EXP market-implied 1-standard-deviation expected move is approximately 12.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on EXP?: Butterflies on EXP are pinning bets - traders use them when they expect EXP 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 EXP implied volatility affect this butterfly?: EXP ATM IV is at 43.50% with IV rank near 92.54%, 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.