FFIN Butterfly Strategy
FFIN (First Financial Bankshares, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company accepts checking, savings and money market accounts, and time deposits; commercial and industrial, municipal, agricultural, construction and development, farm, non-owner occupied and owner-occupied commercial real estate, residential, and consumer auto and non-auto loans to businesses, professional individuals, and farm and ranch operations. It also provides drive-in and night deposit, remote deposit capture, internet and mobile banking, payroll cards, transmitting funds, and other customary commercial banking services, as well as automated teller machines and safe deposit facilities. In addition, the company offers personal trust services, including wealth management, administration of estates, testamentary trusts, revocable and irrevocable trusts, and agency accounts; and securities brokerage services, as well as administer retirements and employee benefits accounts, such as 401(k) profit-sharing plans and IRAs. Further, the company provides asset management and technology services. As of December 31, 2021, it had 78 financial centers across Texas.
FFIN (First Financial Bankshares, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $4.49B, a trailing P/E of 17.00, a beta of 0.84 versus the broader market, a 52-week range of 28.12-38.74, average daily share volume of 765K, a public-listing history dating back to 1993, approximately 1K 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 0.84 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.
Current FFIN snapshot
As of May 15, 2026, spot at $31.16, ATM IV 45.90%, IV rank 22.65%, expected move 13.16%. The butterfly on FFIN 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 FFIN specifically: FFIN IV at 45.90% 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 13.16% (roughly $4.10 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 FFIN expiries trade a higher absolute premium for lower per-day decay. Position sizing on FFIN should anchor to the underlying notional of $31.16 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 near $31.16, the first option leg uses a $29.60 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 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 FFIN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $29.60 | N/A |
| Sell 2 | Call | $31.16 | N/A |
| Buy 1 | Call | $32.72 | 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 $27.06 on the downside to $35.26 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 22.65% 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 45.90%. 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 trading near $31.16, the strikes shown on this page are snapped to the nearest listed FFIN chain strike and the premiums come straight from the end-of-day 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 45.90%), 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 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 FFIN market-implied 1-standard-deviation expected move is approximately 13.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on 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 45.90% with IV rank near 22.65%, 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.