FMBH Butterfly Strategy
FMBH (First Mid Bancshares, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
First Mid Bancshares, Inc. (FMBH) functions as a financial holding company, delivering a broad spectrum of community banking solutions to commercial, retail, and agricultural clients throughout the United States. The institution facilitates various deposit accounts, including checking, savings, money market, and certificates of deposit. Its comprehensive lending suite encompasses financing for commercial real estate, industrial operations, agricultural endeavors (including related real estate), residential properties, and consumer needs. Furthermore, it extends credit to municipalities for community development projects, such as infrastructure enhancements or equipment procurement. Beyond its core banking activities, First Mid Bancshares offers specialized wealth management services. These include estate planning, investment guidance, and farm management and brokerage services for individuals, alongside employee benefit programs for businesses.
FMBH (First Mid Bancshares, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.28B, a trailing P/E of 12.43, a beta of 0.80 versus the broader market, a 52-week range of 34.16-49.03, average daily share volume of 128K, a public-listing history dating back to 1999, approximately 1K full-time employees. These structural characteristics shape how FMBH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.80 places FMBH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FMBH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FMBH?
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 FMBH snapshot
As of June 29, 2026, spot at $47.86, ATM IV 59.20%, IV rank 13.45%, expected move 16.97%. The butterfly on FMBH 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 18-day expiry.
Why this butterfly structure on FMBH specifically: FMBH IV at 59.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a FMBH butterfly, with a market-implied 1-standard-deviation move of approximately 16.97% (roughly $8.12 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FMBH expiries trade a higher absolute premium for lower per-day decay. Position sizing on FMBH should anchor to the underlying notional of $47.86 per share and to the trader's directional view on FMBH stock.
FMBH butterfly setup
The FMBH 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 FMBH near $47.86, the first option leg uses a $45.47 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FMBH chain at a 18-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 FMBH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $45.47 | N/A |
| Sell 2 | Call | $47.86 | N/A |
| Buy 1 | Call | $50.25 | N/A |
FMBH 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.
FMBH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FMBH. 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 FMBH
Butterflies on FMBH are pinning bets - traders use them when they expect FMBH 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.
FMBH thesis for this butterfly
The market-implied 1-standard-deviation range for FMBH extends from approximately $39.74 on the downside to $55.98 on the upside. A FMBH long call butterfly is a pinning play: it pays maximum at the middle strike if FMBH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FMBH IV rank near 13.45% 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 FMBH at 59.20%. As a Financial Services name, FMBH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FMBH-specific events.
FMBH 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. FMBH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FMBH alongside the broader basket even when FMBH-specific fundamentals are unchanged. Always rebuild the position from current FMBH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FMBH?
- A butterfly on FMBH is the butterfly strategy applied to FMBH (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 FMBH stock trading near $47.86, the strikes shown on this page are snapped to the nearest listed FMBH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FMBH 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 FMBH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 59.20%), 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 FMBH butterfly?
- The breakeven for the FMBH 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 FMBH market-implied 1-standard-deviation expected move is approximately 16.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FMBH?
- Butterflies on FMBH are pinning bets - traders use them when they expect FMBH 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 FMBH implied volatility affect this butterfly?
- FMBH ATM IV is at 59.20% with IV rank near 13.45%, 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.