EXP Butterfly Strategy

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

Eagle Materials Inc., operating through its subsidiaries across the United States, stands as a key producer and supplier of both heavy construction and light building materials. The company's diverse operations are organized into distinct segments: Cement; Concrete and Aggregates; Gypsum Wallboard; and Recycled Paperboard. Its core activities involve the mining of limestone for the comprehensive manufacture, distribution, and sale of Portland cement, alongside the grinding and distribution of slag. Additionally, Eagle Materials extracts gypsum to produce and market gypsum wallboard, an essential product utilized for finishing interior walls and ceilings in residential, commercial, and industrial structures. The firm also engages in the production and sale of recycled paperboard, catering to the gypsum wallboard industry and other paperboard converters, while also providing containerboard and lightweight packaging grades. Furthermore, its product portfolio includes ready-mix concrete, complemented by the mining, extraction, and sale of various aggregates such as crushed stone, sand, and gravel.

EXP (Eagle Materials Inc.) trades in the Basic Materials sector, specifically Construction Materials, with a market capitalization of approximately $6.47B, a trailing P/E of 16.21, a beta of 1.38 versus the broader market, a 52-week range of 171.99-245.53, average daily share volume of 444K, 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.

EXP snapshot

As of August 14, 2026, spot at $207.94, ATM IV 34.70%, IV rank 34.92%, expected move 9.95%. The butterfly on EXP below is built from the August 14, 2026 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 EXP specifically: EXP IV at 34.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 9.95% (roughly $20.69 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 EXP expiries trade a higher absolute premium for lower per-day decay. Position sizing on EXP should anchor to the underlying notional of $207.94 per share and to the trader's directional view on EXP stock.

EXP butterfly setup

The EXP butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With EXP at $207.94 on that close, the first option leg uses a $200.00 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 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 EXP shares for the stock leg in covered calls and collars).

EXP butterfly risk and reward

Net Premium / Debit

-$135.00

Max Profit (per contract)

$763.99

Max Loss (per contract)

-$135.00

Breakeven(s)

$201.35, $218.65

Risk / Reward Ratio

5.659

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.

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 $187.25 on the downside to $228.63 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 34.92% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on EXP should anchor more to the directional view and the expected-move geometry. 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 at $207.94 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed EXP chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.70%), the computed maximum profit is $763.99 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 EXP butterfly?

The breakeven for the EXP butterfly priced on this page is roughly $201.35 and $218.65 at expiration, derived from the August 14, 2026 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 EXP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.95%; 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 34.70% with IV rank near 34.92%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

Related EXP analysis

• Butterfly strategy reference
• EXP options overview
• EXP P&L curve (full chain)
• EXP options chain
• EXP volatility skew