FER Butterfly Strategy
FER (Ferrovial SE), in the Industrials sector, (Engineering & Construction industry), listed on NASDAQ.
Ferrovial SE, together with its subsidiaries, engages in the design, construction, financing, operation, and maintenance of transport infrastructure and urban services internationally. It operates through four segments: Construction, Toll Roads, Airports, and Energy Infrastructures and Mobility. The company designs and executes various public and private works, including the construction of public infrastructure; and develops, finances, and operates toll roads. It also develops, finances, and operates airports; and develops, finances, and operates power transmission lines and renewable energy generation plants, as well as offers mobility and waste management plants and services to the mining industry in Chile. In addition, the company promotes, constructs, and operates energy generation and transmission infrastructures. The company was founded in 1952 and is based in Amsterdam, the Netherlands.
FER (Ferrovial SE) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $48.93B, a trailing P/E of 46.91, a beta of 0.80 versus the broader market, a 52-week range of 49.56-74.79, average daily share volume of 1.3M, a public-listing history dating back to 2012, approximately 25K full-time employees. These structural characteristics shape how FER stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.80 places FER roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 46.91 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. FER pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FER?
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 FER snapshot
As of May 15, 2026, spot at $67.06, ATM IV 43.20%, IV rank 7.81%, expected move 12.39%. The butterfly on FER 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 FER specifically: FER IV at 43.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a FER butterfly, with a market-implied 1-standard-deviation move of approximately 12.39% (roughly $8.31 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 FER expiries trade a higher absolute premium for lower per-day decay. Position sizing on FER should anchor to the underlying notional of $67.06 per share and to the trader's directional view on FER stock.
FER butterfly setup
The FER 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 FER near $67.06, the first option leg uses a $63.71 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FER 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 FER shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $63.71 | N/A |
| Sell 2 | Call | $67.06 | N/A |
| Buy 1 | Call | $70.41 | N/A |
FER 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.
FER butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FER. 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 FER
Butterflies on FER are pinning bets - traders use them when they expect FER 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.
FER thesis for this butterfly
The market-implied 1-standard-deviation range for FER extends from approximately $58.75 on the downside to $75.37 on the upside. A FER long call butterfly is a pinning play: it pays maximum at the middle strike if FER settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FER IV rank near 7.81% 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 FER at 43.20%. As a Industrials name, FER options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FER-specific events.
FER 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. FER positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FER alongside the broader basket even when FER-specific fundamentals are unchanged. Always rebuild the position from current FER chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FER?
- A butterfly on FER is the butterfly strategy applied to FER (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 FER stock trading near $67.06, the strikes shown on this page are snapped to the nearest listed FER chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FER 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 FER butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.20%), 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 FER butterfly?
- The breakeven for the FER 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 FER market-implied 1-standard-deviation expected move is approximately 12.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FER?
- Butterflies on FER are pinning bets - traders use them when they expect FER 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 FER implied volatility affect this butterfly?
- FER ATM IV is at 43.20% with IV rank near 7.81%, 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.