How are FLG 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 FLG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.20%), the computed maximum profit is $65.00 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FLG butterfly?

The breakeven for the FLG butterfly priced on this page is roughly $13.65 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 FLG market-implied 1-standard-deviation expected move is approximately 9.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FLG implied volatility affect this butterfly?

FLG ATM IV is at 33.20% with IV rank near 7.44%, 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.

FLG Butterfly Strategy

FLG (Flagstar Financial, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company's deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024.

FLG (Flagstar Financial, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $5.71B, a beta of 1.03 versus the broader market, a 52-week range of 10.38-14.92, average daily share volume of 5.1M, a public-listing history dating back to 1993, approximately 7K full-time employees. These structural characteristics shape how FLG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.03 places FLG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FLG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on FLG?

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 FLG snapshot

As of May 15, 2026, spot at $13.30, ATM IV 33.20%, IV rank 7.44%, expected move 9.52%. The butterfly on FLG 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 245-day expiry.

Why this butterfly structure on FLG specifically: FLG IV at 33.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a FLG butterfly, with a market-implied 1-standard-deviation move of approximately 9.52% (roughly $1.27 on the underlying). The 245-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FLG expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLG should anchor to the underlying notional of $13.30 per share and to the trader's directional view on FLG stock.

FLG butterfly setup

The FLG 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 FLG near $13.30, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLG chain at a 245-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 FLG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$13.00	$1.98
Sell 2	Call	$13.00	$1.98
Buy 1	Call	$14.00	$1.33

FLG butterfly risk and reward

Net Premium / Debit: +$65.00
Max Profit (per contract): $65.00
Max Loss (per contract): -$35.00
Breakeven(s): $13.65
Risk / Reward Ratio: 1.857

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.

FLG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on FLG. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	+$65.00
$2.95	-77.8%	+$65.00
$5.89	-55.7%	+$65.00
$8.83	-33.6%	+$65.00
$11.77	-11.5%	+$65.00
$14.71	+10.6%	-$35.00
$17.65	+32.7%	-$35.00
$20.59	+54.8%	-$35.00
$23.53	+76.9%	-$35.00
$26.47	+99.0%	-$35.00

When traders use butterfly on FLG

Butterflies on FLG are pinning bets - traders use them when they expect FLG 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.

FLG thesis for this butterfly

The market-implied 1-standard-deviation range for FLG extends from approximately $12.03 on the downside to $14.57 on the upside. A FLG long call butterfly is a pinning play: it pays maximum at the middle strike if FLG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FLG IV rank near 7.44% 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 FLG at 33.20%. As a Financial Services name, FLG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLG-specific events.

FLG 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. FLG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLG alongside the broader basket even when FLG-specific fundamentals are unchanged. Always rebuild the position from current FLG chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on FLG?: A butterfly on FLG is the butterfly strategy applied to FLG (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 FLG stock trading near $13.30, the strikes shown on this page are snapped to the nearest listed FLG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FLG 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 FLG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.20%), the computed maximum profit is $65.00 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FLG butterfly?: The breakeven for the FLG butterfly priced on this page is roughly $13.65 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 FLG market-implied 1-standard-deviation expected move is approximately 9.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on FLG?: Butterflies on FLG are pinning bets - traders use them when they expect FLG 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 FLG implied volatility affect this butterfly?: FLG ATM IV is at 33.20% with IV rank near 7.44%, 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.