FFIN Butterfly Strategy
FFIN (First Financial Bankshares, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
First Financial Bankshares, Inc. (FFIN) is a financial institution that delivers a broad array of commercial banking and financial services throughout Texas via its network of subsidiaries. Its core offerings include various deposit solutions, such as checking, savings, money market, and time deposit accounts. The company provides diverse lending options, extending credit for commercial and industrial ventures, municipal projects, agriculture, construction and development, and farm operations. It also finances both owner-occupied and non-owner-occupied commercial real estate, residential properties, and consumer needs, including vehicle and other personal loans. These services primarily cater to businesses, professional clients, and agricultural enterprises. The institution also equips its customers with contemporary banking conveniences like internet and mobile banking, remote deposit capture, payroll cards, and funds transfer capabilities.
FFIN (First Financial Bankshares, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $5.05B, a trailing P/E of 18.79, a beta of 0.83 versus the broader market, a 52-week range of 28.12-38.12, average daily share volume of 831K, a public-listing history dating back to 1993, approximately 2K full-time employees. These structural characteristics shape how FFIN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places FFIN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FFIN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FFIN?
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.
FFIN snapshot
As of August 14, 2026, spot at $35.31, ATM IV 36.40%, IV rank 13.61%, expected move 10.44%. The butterfly on FFIN 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 FFIN specifically: FFIN IV at 36.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a FFIN butterfly, with a market-implied 1-standard-deviation move of approximately 10.44% (roughly $3.68 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 FFIN expiries trade a higher absolute premium for lower per-day decay. Position sizing on FFIN should anchor to the underlying notional of $35.31 per share and to the trader's directional view on FFIN stock.
FFIN butterfly setup
The FFIN 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 FFIN at $35.31 on that close, the first option leg uses a $33.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FFIN 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 FFIN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $33.54 | N/A |
| Sell 2 | Call | $35.31 | N/A |
| Buy 1 | Call | $37.08 | N/A |
FFIN 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.
FFIN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FFIN. 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 FFIN
Butterflies on FFIN are pinning bets - traders use them when they expect FFIN 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.
FFIN thesis for this butterfly
The market-implied 1-standard-deviation range for FFIN extends from approximately $31.63 on the downside to $38.99 on the upside. A FFIN long call butterfly is a pinning play: it pays maximum at the middle strike if FFIN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FFIN IV rank near 13.61% 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 FFIN at 36.40%. As a Financial Services name, FFIN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FFIN-specific events.
FFIN 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. FFIN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FFIN alongside the broader basket even when FFIN-specific fundamentals are unchanged. Always rebuild the position from current FFIN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FFIN?
- A butterfly on FFIN is the butterfly strategy applied to FFIN (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 FFIN stock at $35.31 on the most recent close, the strikes shown on this page are snapped to the nearest listed FFIN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FFIN 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 FFIN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.40%), 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 FFIN butterfly?
- The breakeven for the FFIN 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 FFIN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FFIN?
- Butterflies on FFIN are pinning bets - traders use them when they expect FFIN 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 FFIN implied volatility affect this butterfly?
- FFIN ATM IV is at 36.40% with IV rank near 13.61%, 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.