FC Butterfly Strategy
FC (Franklin Covey Co.), in the Industrials sector, (Consulting Services industry), listed on NYSE.
Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through three segments: Direct Offices, International Licensees, and Education Practice. It also provides a suite of individual-effectiveness and leadership-development training and products. The company was incorporated in 1983 and is headquartered in Salt Lake City, Utah.
FC (Franklin Covey Co.) trades in the Industrials sector, specifically Consulting Services, with a market capitalization of approximately $239.9M, a beta of 0.78 versus the broader market, a 52-week range of 11.16-24.7, average daily share volume of 187K, a public-listing history dating back to 1992, approximately 1K full-time employees. These structural characteristics shape how FC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.78 places FC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on FC?
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 FC snapshot
As of May 15, 2026, spot at $20.52, ATM IV 73.80%, IV rank 22.41%, expected move 21.16%. The butterfly on FC 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 FC specifically: FC IV at 73.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a FC butterfly, with a market-implied 1-standard-deviation move of approximately 21.16% (roughly $4.34 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 FC expiries trade a higher absolute premium for lower per-day decay. Position sizing on FC should anchor to the underlying notional of $20.52 per share and to the trader's directional view on FC stock.
FC butterfly setup
The FC 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 FC near $20.52, the first option leg uses a $19.49 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FC 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 FC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $19.49 | N/A |
| Sell 2 | Call | $20.52 | N/A |
| Buy 1 | Call | $21.55 | N/A |
FC 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.
FC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FC. 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 FC
Butterflies on FC are pinning bets - traders use them when they expect FC 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.
FC thesis for this butterfly
The market-implied 1-standard-deviation range for FC extends from approximately $16.18 on the downside to $24.86 on the upside. A FC long call butterfly is a pinning play: it pays maximum at the middle strike if FC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FC IV rank near 22.41% 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 FC at 73.80%. As a Industrials name, FC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FC-specific events.
FC 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. FC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FC alongside the broader basket even when FC-specific fundamentals are unchanged. Always rebuild the position from current FC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FC?
- A butterfly on FC is the butterfly strategy applied to FC (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 FC stock trading near $20.52, the strikes shown on this page are snapped to the nearest listed FC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FC 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 FC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 73.80%), 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 FC butterfly?
- The breakeven for the FC butterfly priced on this page is no defined breakeven on the modeled curve 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 FC market-implied 1-standard-deviation expected move is approximately 21.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FC?
- Butterflies on FC are pinning bets - traders use them when they expect FC 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 FC implied volatility affect this butterfly?
- FC ATM IV is at 73.80% with IV rank near 22.41%, 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.